Recent content by InterestedObserver

Indeed. They cannot all spend the money that they own at the same time. If they tried to do this, the bank would experience a reserve depletion issue. This is the major weakness that fractional reserve banking introduces into a monetary system. But, just because they cannot all spend their...

Great reply Zippyjuan, thanks for the depth and example to form a conversation around. This is a good post. Not sure if you are claiming fractional reserve banking does not increase the money supply, or if you are trying to provide a common argument that someone else would provide. So, I want...

So, I've been looking into fractional reserve banking and how it increases the money supply over the past few years. I have seen on some documentaries and videos examples of how the money supply expands due to fractional reserve banking processes. These examples helped show the idea, but it was...

Everyone tends to rely on the CPI to determine the inflation rate of the dollar. I learned recently that the CPI measures price inflation; as such, it does not actually measure the inflation rate of the dollar. And yet nearly every online calculator that proposes to calculate the "inflation rate...