Quick guide to the dance with money

Inflation is about demand, not supply

About 90 years ago, British economist Keynes already knew that at times when demand for real resources (land, labour, physical capital) compared to supply is low, DEMAND, and hence the economy can and needs to be stimulated by spending more (created, if need be) money on activities making use of those real resources. It is safe (under these circumstances, the fiscal stimulus will not cause excessive inflation) and effective. Moreover, it is ONLY demand-stimulus that will work — no demand, no economy. No…