Money sitting in accounts making interest does not contribute to GDP.
What I have sitting in my bank account that I’m getting interest payments for is not money but stocks. I’ve spent that money to buy those stocks. That money has been back in the circulation this whole time.
What I have sitting in my bank account that I’m getting interest payments for is not money but stocks. I’ve spent that money to buy those stocks. That money has been back in the circulation this whole time.