Source: Cobden Centre
by Dr. Frank Shostak
“It is held by a popular thinking that a growing economy requires a growing money supply in order to provide support to economic growth. The idea that the money supply must grow in order to support the growth rate of an economy gives the impression that money is the means of sustenance that sustains economic activity. However, money’s main function is to fulfill the role of the medium of exchange. Money does not sustain economic activity. The means of sustenance are provided by the saved consumer goods.” (12/09/25)
https://www.cobdencentre.org/2025/12/does-a-growing-economy-require-increase-in-money-supply/