And if, during a boom, the demand for loans expands beyond the capacity of the economy – in other words, clients apply for and bankers create too much credit, which is then used to chase too few goods, services and speculative assets – the money supply expands. In this case, excessive borrowing and credit creation is likely to have an inflationary impact. If money is lent or borrowed at high real rates of interest, then it does indeed quickly become unpayable debt.