|
S Illinois | I would argue fractional reserve lending is a societal good not bad. This type of lending allows for economic expansion based upon economic suitability and not constrained by money supply. With a constrained money supply and no fractional reserve lending, all new economic output would require a similar amount of economic savings. So say one wanted to build a factory. Somewhere some would have to have a factory equivalent just sitting there in reserve not being used in an economic productive way. | |
|
How money is created
