I ended my previous post with the suggestion that the ability to borrow be viewed as part of the money supply; it's worth noting that this is even more pro-cyclical[1] than usual measures of the money supply.
[1] As far as I know. Fact-checking isn't strictly opposed to the spirit of this blog, but while this is an assertion I'm making based on intuition that is less informed than most of the assertions I make here, I don't feel like trying to figure out whether it's true.
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