I was reading Ray Dalio's book on Priciples for dealing with the changing world order, and I came across this statement
At first there are the same number of claims on the "Hard money" as there is hard money in the bank. Then the holders of paper claims and the banks discover the wonders of credit and debt. (Which means there is more claims on "hard money" than there is hard money in the bank)
Note: I've never actually learnt economics in school, so I may be missing some of the key elements that looks stupid obvious to an individual that went to school. I have studied microeconomics before through online courses though. Recommendations on easier books to read are welcome.