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Almost. It keeps housing as a luck of the draw thing (since it doesn't address shortage) but it keeps more money moving around in the town's economy rather than
by bandrami 3y ago
Almost. It keeps housing as a luck of the draw thing (since it doesn't address shortage) but it keeps more money moving around in the town's economy rather than sitting tied up in a house.
- quickthrower2 3y agoKind of! Here is the rub. When someone borrows $1m to buy a house, new money is created. Therefore the economy relies somewhat on borrowing to keep money flowing around.
- bandrami 3y agoYeah, lowering the money supply is a bonus, but more importantly a lower percent of the money supply will be in the form of current P minus current I.