20 Th is diagnosis of infl ation runs counter to the Keynesian argument developed in the 1930s, by which infl ation is not caused by public defi cit spending per se, but rather emerges when the economy reaches full capacity and demand structurally outstrips supply. Th us, in the Keynesian argument defi cit spending does not provoke infl ation until full employment.

Clara E. Mattei, The Capital Order, loc. 1683