Free Capitalist Network - Community Archive
Mises Community Archive
An online community for fans of Austrian economics and libertarianism, featuring forums, user blogs, and more.

Browse Forum Posts by Tags

Showing related tags and posts for the Forums application. See all tags in the site
  • how does defaulting on debt affect money supply?

    If you default on debt why does the money supply contract? If I borrow $100 from the central bank, then spend it into the economy and then tell the central bank I default, I can't pay the money back, than that is $100 extra in the system that will never be taken out. Correct? If I had paid the money...
    Posted to Economics Questions (Forum) by Lawrence on Thu, Mar 11 2010
Page 1 of 1 (1 items)