You have heard economists say that they are puzzled by the nature of today’s
problem: they are unable to understand why inflation is accompanied by
recession—which is contrary to their Keynesian doctrines; and they have coined
a ridiculous name for it: “stagflation.” Their theories ignore the fact that
money can function only so long as it represents actual goods—and that at a
certain stage of inflating the money supply, the government begins to consume a
nation’s investment capital, thus making production impossible.