Second, however, what he is setting out as a policy argument can also be taken to suggest the non-neutrality of money. Furthermore, he is drawing attention to the harmful effects of deflation in contrast to the benefits of inflation.
Many interpretations have been put forward as to how these two propositions can coexist.6 The compatibility of the two propositions aside, in the latter we may be able to locate the roots of the idea of a high-pressure economy.