@hororizon44575

wait

to give a credit you also need sameone who wants the credit

Ok

in deflation bank will tend to not give credits becouse giving credit if nnoone buys means higher risk

but in inflation its the oppesit giving credit at low risk

(thats why i also think poeple who say just let it solve by free markets should check there brains)

What is "it"?

What do you want to solve..

in inflation people tend to buy more

Okay

thats the it

How is that a problem?

It will increase demand right .

it will incrase demand and money in the system which will increase inflation which will increase demand which will increase...

And the bubble bursts?

Like in 2008?

yeah kind of

and banks who coused it are labeled system relevant

But you can increase demand without increasing inflation right?
Just give people more jobs and their salaries will increase

I.e. improve your country

Make more factories

Education etc

well yes more money can also mean more jobs in this case you have prodcut you can uy with the more money

but well imagine its going to fast

than you have crises

and also the ressources on the planet are limited. (well you can grow in fields which do not require new ressources like programming a game or so.

So the growth is a bit artificial, and dosent represent real growth...

growth=?

BIP?

> but well imagine its going to fast
@hororizon44575 .

i meaned if the fast more money comes into the system which does rsult in more demand

i mean new money in the system which results in new products is no Problem its only a problem if new money in the system >>> new products in the system. While its always more than new products.

in Europe EZB (European central bank) has an inflation target of 2%

Hyperinflation?

well not hyper but galloping inflation

So what is this gloating people go on doing about "American financial system will collapse"? I don't think they print money. Ofc now they did because of pandemic

if you give to much creidts at the same time

@justkaus i do not know american situation i live in germany

Ok. So what's the biggest problem you see?

Isint everything fine..