This is a really interesting observation.  I&#x27;ve never heard someone mention a &quot;buffer&#x2F;holding effect&quot; before, but that makes a lot of sense.<p>I wonder if it&#x27;s something like... the average individual spends half of whatever cash they have available every year... but the average business that takes investment lets 6 to 12 months of it sit in accounts.  I realize the bank would then loan against the money in those accounts, but is it &quot;turtles all the way down&quot;?<p>I&#x27;ll have to refresh my understanding of fractional reserve banking, but I don&#x27;t think a loan from Bank A being put into Bank B and so on can lead to infinite money supply.  If I remember correctly it somehow leads to some multiple of the input money being generated.  Here&#x27;s a Wikipedia article about it:<p><a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Money_multiplier#Reserves_first_model" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Money_multiplier#Reserves_firs...</a><p>At some point all the institutions sitting on their money eventually does result in that money being sat on, and not being circulated through the economy.