Frac. res. banking is the worst way to get inflation

Fractional reserve banking enables the government to have inflation and erode savings. But sometimes it might be preferable to allow some degree of inflation... we might argue that this is somewhat progressive because it means that the rich who have savings are penalised in favour of the poor who have no money. Although this is generally not the case (the rich have non-money assets such as real estate) there is nevertheless an argument to say that some inflation is good. So the 'problem' with fractional reserve banking is not that it causes inflation but that the means by which the inflation is generated is not optimal. There are almost unlimited different methods by which inflation can be produced by the state... frb is about the worst possible choice to make. If inflation is good then there are many better ways for the government to produce inflation than frb. Fractional reserve banking is about the worst way for the government to produce inflation.