>in effect asking for more units of money than actually exist in the whole system.
Depends on how you define the 'whole system'. If I borrow $100 and make $110, the latter didn't appear out of nowhere. The lender, too, could have turned that $100 into $110.
Why shouldn't they be compensated for that opportunity cost?
Depends on how you define the 'whole system'. If I borrow $100 and make $110, the latter didn't appear out of nowhere. The lender, too, could have turned that $100 into $110.
Why shouldn't they be compensated for that opportunity cost?