Banks charge interest based on the inflation rate in order to make money. For example, if I take out a loan from a bank of $100 at a 10% interest rate, and pay back $110 at the end of the year, it seems that the bank made money. However, if the inflation rate increased by 10% during that year, then the bank really made no money because each dollar is worth only 90% of what they were worth at the beginning of the year. The bank received exactly the same amount of value they gave out.
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