Hundred Quote by David Ricardo
“Whether a bank lent one million, ten million, or a hundred millions, they would not permanently alter the market rate of interest; they would alter only the value of the money they issued.”
About This Quote
Source Treat: Principles of Political Economy and Taxation, 1817
Bank lending changes the money supply, not the underlying market interest rate.
In simple terms: Loans affect money value, not rates.
Key Takeaway
Focus on money supply effects.
Themes
economics
finance
money supply
Mood
analytical
neutral
Type
educational
informative
When to use this quote
- central banking
- loan issuance
- inflation control
Key Concepts
interest rates
market equilibrium
Questions to Reflect On
- How does money supply affect inflation?
- Can policy target money value directly?
A Different Perspective
If banks coordinate, they could influence rates.
![“Nearly all the writing of our time is likely to disappear in a hundred years. Certainly most readers - and nearly all critics - feel that [Kurt] Vonnegut started to repeat himself, to grow increasingly self-indulgent and meandering, and to sometimes just blather in his later work. But his books up…” quote by Michael Dirda](https://sms4smile.com/quotes/img-quotes/ed7/michael-dirda-3414_1960s_nearly-all-the-writing-of-our-time-is-li_13506.jpg)
