Post
Topic
Board Economics
Re: US Federal Reserve mulls printing more money
by
dwdollar
on 22/09/2010, 20:11:15 UTC
Wouldn't a nationwide bank run result in hyperinflation?

  A bank run is an increase in demand for currency.  Which would create hyperdeflation, as the value of currency rose to meet the clearing price at the current supply.

I don't follow you.  If you will, please break it down.

All of those accounts are "insured" for up to $250,000.  Where will this money come from?  They will have to issue more money or default on their promises.