logoalt Hacker News

nobodyandproudlast Wednesday at 12:39 PM1 replyview on HN

The money supply is not zero sum. Private lenders create money when they lend and are paid back the loan with interest.

It’s also why there’a always some level of inflation: Modest inflation is a sign of a healthy economy.


Replies

ziml77last Wednesday at 3:47 PM

This video starts with a good explanation of how lending creates new money https://youtu.be/8xzINLykprA