2 ms·
Even though you are right, this is a very poor example. If the person that lent you the 400k don't have them at their disposal then the total amount of money a
by satellite2 3y ago
Even though you are right, this is a very poor example.
If the person that lent you the 400k don't have them at their disposal then the total amount of money at the disposal of someone in the economy didn't change after your transaction.
You are right because banks can create money.
- tmn 3y agoFair distinction. But even in the hard money lending case, the implication is that money is being freed up to circulate. More velocity leads to more inflation