It's the Fed. It literally prints money and loans it out. And it's doing this to replace money erased during a bank run, so no inflation implications.
Money isn’t erased during a bank run. It’s given back to the owners who always had a right to have it. Fractional reserve banking is what erases money.
I never said inflation was detrimental or harmful (my personal belief is that it is harmful, however), just that adding money to the supply is by definition monetary inflation (the origin of the concept of cost inflation which is what we’re being asked to accept as the true definition). Putting air into a balloon doesn’t mean it will pop; it’s still being inflated. Hey, it’s even more fun for a while ;-)
I was responding to a parent who said printing money isn’t inflation, when it’s the literal definition of, and the origin of the term in monetary theory. It’s not very constructive to conversation to attempt to change meaning of words to make one point or another.
My apologies for reading incorrectly. My comment is true only for price inflation.
M3 is erased during a bank run, because the multiplier from M1 to M3 caused by fractional reserves goes away.
The SVB depositors are going to turn around and put their money in a new bank.