Prices increase when a bank makes a loan. This is because reserves are not in the economy and do not alter prices.
Bank lending causes inflation.
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About Me
- Geolibertarian
- John Locke, Second Treatise of Government: "No body could think himself injured by the drinking of another man, though he took a good draught, who had a whole river of the same water left him to quench his thirst."
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