The crucial point and also the point of deviation from Mr. Keynes’s analysis is to understand well that a reaction must inevitably set in, if this productive expansion is not financed by real, voluntary saving of individuals or corporations but by ad hoc created credit. And it is practically very important—the last boom should have brought this home to us—that a stable commodity price level is not a sufficient safeguard against such an artificial stimulation of an expansion of production. In other words, that a relative credit inflation, in the above-defined meaning of the term, will induce
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credit inflation in production causing economic crash. Increased means of productions supported by expanding credit, which when it falls crashes the economy.
