Fighting inflation
reformedbanker
Posted 5/22/2026 19:38 (#11654129 - in reply to #11654086)
Subject: RE: Fighting inflation


Money is created, M2 grows with the loan because we know not all depositors will demand their funds back tomorrow. If they did, banks would have have to excersize the demand feature of most loans... in theory. In reality, Fed backstops the run.
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