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This video is a response to Banking 3: Fractional Reserve Banking
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Even without interest, fractional reserve banking inflates the money supply.
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Inflation has nothing to do with the expansion of the money supply. It has to do with the additional cash being spent on luxury items or being stale as savings. If the created money gets engaged in creation of valuable goods and services the extra production will keep the extra demand in check.
planetofelites 11 months ago