Re:A candy man revolutionized the sushi industry
by varjag on Friday September 01, 2017 @03:03AM
(#15146698)
From a bank's perspective, a loan is an investment/asset, so should probably be a part of what is called M2 or M3 money.
EDIT: Wikipedia seems to agree: https://en.wikipedia.org/wiki/Money_supply#Fractional-reserv...
> Whenever a bank gives out a loan in a fractional-reserve banking system, a new sum of money is created. This new type of money is what makes up the non-M0 components in the M1-M3 statistics.
Re:A candy man revolutionized the sushi industry
by ge96 on Friday September 01, 2017 @03:59AM
(#15146889)
Is bitcoin undergoing deflation? (asking because I'm not sure) it's going to be worth $5,000 soon it looks like I thought deflation is the opposite of that where there's so much it's worthless.
I just assume we get money from other countries. And provided we (people in the US) accept dollars from each other then it keeps going.
Yeah it's confusing I'm definitely not an economist myself haha.
edit: thanks
I'm less certain about the second thing, but I think that debt (and banks?) increase the (effective?) money supply. If you borrow money from a bank (or debt directly from a company for goods or services) to build a new house, then you've acquired a valuable new asset, the laborers you paid acquired new currency, so the total economy can exceed the number of bills that have been printed and are physically in circulation.
There's a lot there that I'm not sure about, and there's plenty of further fascinating questions that follow on from there that I don't know anything about, but I hope that helps you understand some things about how production and the money supply work!