One of the great economic myths of all time is that merely by creating more money, including easy credit, the government can bring about increased prosperity. It’s the equivalent of the perpetual motion machine — sounds good, but impossible. Professor Richard Ebeling writes about the inflation fix idea in this piece.

Prosperity depends on making the optimal use of our limited resources. Creating more money does not aid in the search for the optimal use (which changes constantly) but it does a lot to impede it.