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mafribe | 2 years ago

> money are kept by the people in banks and not released

The banks will reinvest this money. (Cf Fractional-reserve banking).

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nine_zeros|2 years ago

> The banks will reinvest this money. (Cf Fractional-reserve banking).

Only if there is demand for the money at a high interest rate. The credit boom is dependent on the borrower as well.