Loan Recirculation Simulator
This model follows the idea: required expansion $g = i \times (D/M) \times (1-s)$. A loan creates principal, interest is paid over time, and only the share that banks re-spend into the real economy returns as circulating liquidity. Use the sliders to test how fast the system must expand under different assumptions.
Assumptions
Headline Results
Required annual expansion
Money after simulation
Cumulative growth
Interest retained by banks
Over Time
Year-by-Year Table
| Year | Money in Circulation | Total Debt (D) | Interest Due | Bank Re-spending | Interest Retained | Required New Money |
|---|