In theory the money I save in the bank is the money that the banks lend to businesses and individuals to keep the economy going.
I was referring to money no longer going through the tills chasing goods/services. Inflation = too much money chasing not enough goods. Deflation = not enough money chasing too many goods.
Putting your money into the banks so that they can lend to businesses and individuals “to keep the economy going” is pointless during periods of deflation. If businesses can’t sell their goods and services because people aren’t spending, then they need to contract – not expand. You don’t need to borrow money to do that.
Plus why would banks lend money to individuals at a time when individuals are depositing money into saving accounts ? Deflation is a truly horrendous state of affairs which without intervention, can snowball out of control with highly destructive consequences. Hence the need sometimes to consider quantitative easing.