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A comment on Why the 2% Inflation Target? (2023). Parent comment

Re:Why the 2% Inflation Target? (2023) by wolverine876 on Friday March 22, 2024 @06:39PM (#39795600)
If you mean by lending it, etc., that is regulated by the government - interest rates, reserves, oversight, much more.
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Re:Why the 2% Inflation Target? (2023) by rufus_foreman on Friday March 22, 2024 @07:18PM (#39795859)
Well pretty much everything is regulated by the government but banks still create money.

As for reserves, have you, or anyone you know with a good credit record, ever applied for a loan and gotten told, "We would like to lend you money, but we are all out of money to lend due to reserve requirements. Can you check back in next week?"

That doesn't happen. The bank creates the money and deals with reserve requirements later.

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