They only cause inflation by lending if nothing of value is created by the money they lend out, though.
Lending just shifts the value creation to after the money is created, with some risk in that some value isn’t created after the money has been created to represent the outcome. If we didn’t expand the money supply, we would have severe deflation.
They only cause inflation by lending if nothing of value is created by the money they lend out, though.
Lending just shifts the value creation to after the money is created, with some risk in that some value isn’t created after the money has been created to represent the outcome. If we didn’t expand the money supply, we would have severe deflation.