3 ms·
Kind 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 flowin
by quickthrower2 3y ago
Kind 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.