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Nerd_doe  ·  3212 days ago  ·  link  ·    ·  parent  ·  post: Why I Defaulted on My Student Loans

Fair enough, but I still don't understand why the fact that the money 'created' by the loan relationship (as the BoE put it) isn't erased by the payment and end of the loan relationship isn't relevant. That is, there's new money in circulation, and nothing happens to take it back out? Isn't that inflation in action?