Re:How does the economy work? A new Fed paper suggests nobod...
by imtringued on Sunday October 03, 2021 @03:11PM
(#28739726)
1 Apple = $1
I borrow $100 from the bank which creates $100. I buy seeds and plant trees. I sell 100 Apples to pay the loan back. Did the value of the dollar go down? No it didn't. This is how the supply of money can go up much faster than inflation.
I borrow $100 from the bank which creates $100. I buy seeds and plant trees. I sell 100 Apples to pay the loan back. Did the value of the dollar go down? No it didn't. This is how the supply of money can go up much faster than inflation.