> why it's important for a currency to be inflationary
Money is created when people take out loans right? (like for a home or car, or when a buisness takes out a loan for capex)
So if the population contracts (i.e. the boomers start dying) doesn't that mean there should a contraction of money supply since fewer people will exist to take out loans?
Money is created when people take out loans right? (like for a home or car, or when a buisness takes out a loan for capex)
So if the population contracts (i.e. the boomers start dying) doesn't that mean there should a contraction of money supply since fewer people will exist to take out loans?