alt Hacker NewsI learned about this concept in college macroeconomics. I asked this exact question and the TA said “yeah I guess repaying debt is like destroying money” as if they had never thought of that before. The idea of lending money increasing the money supply is definitionally true.
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hdgvhicv • today at 5:11 PM
And when debt is wiped out through bankruptcy that inflation remains.
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> the TA said “yeah I guess repaying debt is like destroying money” as if they had never thought of that before
They shouldn't have been a TA. Modern money is destroyed in three ways: through taxation, defaults and the extinguishing of debts.