3 ms·
It sounds like a lot of guessing to me. I still don't understand why expanding the money supply is the right thing to do. I grant you that the demand will incre
by zaphar 17y ago
It sounds like a lot of guessing to me. I still don't understand why expanding the money supply is the right thing to do. I grant you that the demand will increase but why is meeting that demand a good thing?
- Retric 17y agoThe other option is deflation and lot's of it, which causes most people with long term loans to default. The great depression saw ~50% deflation which means all your debt and debt servicing costs double. Which causes most people to walk away from any loan they can which creates a huge downward spiral.