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by Eddy_Viscosity2
283 days ago
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If a bank issued you a loan for $100M, that money is effectively created out of thin air. If you then use that to buy a bunch of properties, you are increasing the demand. If others are doing this as well, prices will go up as people bid against each other for the limited supply of properties. This is inflation, because the new demand is directly caused by the creation of new money. |
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It ignore other factors that impact demand and supply.