Central bankers rethink their devotion to slaying inflation

Re:Central bankers rethink their devotion to slaying inflation by Expez on Sunday December 23, 2012 @05:03PM (#4960848)

Fractional reserve confuses me greatly, because I always end up thinking there will be more interests due than there is "real money" in existence. Which leads me to belive we need periods of very high inflation to reset the economy every now and then.

In the past we've had wars, which have been paid for with inflation. If a war, or some other cause of inflation does not come about, won't the bankers soon have all the money? How does this work out?

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Re:Central bankers rethink their devotion to slaying inflation by DasIch on Sunday December 23, 2012 @05:44PM (#4960989)

Independently from central banks money is continually being created due to lending, which causes inflation. In a healthy economy central banks actually destroy money to keep that inflation at acceptably low levels.

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