Profound disregard? What am I missing? I know how it works. I’m questioning its supposed benefits. How do higher prices help us? Does increased velocity or supply increase our standard of living? More money doesn’t create more goods. It doesn’t perform any net social benefit. Some people are helped, others are hurt.
If the fractional reserve loaning leads to correspondingly higher economic production, within reason, that does not raise prices. The problem is preventing it from expanding to the point where too much is being produced, beyond the ability to consume or use it.
Tell that to the company that just started manufacturing after getting a fractional reserve loan from the bank.