/biz/ - Business & Finance

>>54049797
Anon it would be deflationary. Did you not read what I wrote?

Currently money goes into banks, which are then free to loan out that money to anyone, who then deposit it into banks, who then loan out that money, etc.
Most money is created through loans in this way, such that a 10% reserve requirement leads to a $100 deposit turning into $1000 dollars of digital cash.

If the federal reserve, as a central bank, actually started acting like a fucking bank for once, and just took people's cash and guaranteed withdrawals, it would cause deflationary pressure when institutions that just want to hold their cash but have nowhere to put it, use the service.

Even mmo games have this service, it's one of the few services a government should actually provide.