[atlih]

This is guaranteed to cause a banking system and currency meltdown in the long run, not to mention the negative effect of rampant malinvestment in the economy. Since banks everywhere are free to issue unlimited "Bank money" through credit cards and other means and have nothing holding them back except the risk of the ATM's being unable to service the demand for real currency. The lower the demand for real currency the more "Bank money" can be created. Now lets see with 0% demand for real currency how much "Bank money" will be created.