dms wrote:The question is
dms wrote:
The question is whether the money supply is expanded and contracted by private businesses/individuals taking out and repaying loans from commercial banks. It sounds to me like it is and I think the ECB article backs me up on this.
I don't think anyone argues against this, so long as you're talking about the broad money supply, or if they do I've not heard it.The question is whether or not commercial banks can infinitely go on extending credit without eventually getting into trouble.Or another question concerns the questions of the nature of economic crises in capitalism. Is the cause of these always and only to do with the money supply?