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They are not marginally increasing. Were note and deposit creation to proceed until the marginal revenue from their issue (which is approximately equal to their purchasing power) equaled the marginal cost of production, it would necessitate a significant fall in the former magnitude. That could only occur (in a stationary or progressing economy) if the nominal supply of money surpassed the demand for it. 7 Although this would still be profitable to the banks of Edition: current; Page:  issue, some part of the resulting output of inside money would be unnecessary and, indeed, destructive from consumers’ point of view. It follows that something other than the cost of machinery, paper, ink, and administration that go into the issue of inside.