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/biz/ - Business & Finance


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56534288 No.56534288 [Reply] [Original]

If raising interest rates is supposed to tighten the money supply where does the money come from to pay people interest?

>> No.56534305

Interest rates don't tighten the money supply it tightens credit you retard, 90% of the "money" circulating in the economy is credit not m2 money.
Raising interest rates reduces credit (90% of circulating money) not actual money

>> No.56534322

>>56534288
how do you make these kind of pics?

>> No.56534365

>>56534305
OK but where do they get the money to pay increased interest to creditors?

>> No.56534428

>>56534322
Dall-E