money-supplyWikipedia says: "When money is deposited in a bank, it can then be lent out to another person. If the initial deposit was $100 and the bank lends out $100 to another customer the money supply has increased by $100."
Since the person with the original $100 no longer has it in his wallet, how is it considered still in circulation? It seems to me the money supply hasn’t increased at all, but that a hundred bucks has just moved from my wallet into your wallet.
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