> The existence of credit itself is what causes monetary instability, and without credit the world would look very different.

Indeed. Credit is money; ultimately anyone can expand the money supply with an IOU.

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benenrjdnz a day ago | parent [-]

Money is destroyed when a loan is paid back. Private credit does not expand the monetary supply permanently. Only the state can increase the money supply.

	▲	donavanm a day ago \| parent \| next [-]
		Your understanding of monetary theory is somewhere between 110 and 5,000 years off. Furness had a pretty cogent explanation of a monetary system without central authority or functional currency about 100 years ago with the Yap. They even managed to have bouts of inflation without the concept of a bank or state.
	▲	IAmBroom a day ago \| parent \| prev [-]
		You are neglecting interest paid. It doesn't matter who issues the credit - the Medici family or the US Federal Reserve.