“Spending beyond the economy’s total productive capacity is what leads to inflation. “
This is moronic thinking. What is important about money is it’s information carrying capacity, period. Arbitrary fluctuations, whether for pump priming or whatever are devastating to information content. Any fixed rule will work, whether it is inflationary or deflationary, as long as it is fixed. But politicians like to steal, so they can’t keep with a constant fiat currency but debase it in an accelerating way. That’s where gold comes in, because it is stable, but it is also subject to fractional banking.
So in short, that’s why you have revolutions, to purge the kings/bankers when they steal too much. The idea that central bankers can know how much money to pump in to keep the economy at full roar is absurd Keynesianism which we are now experiencing in full fail mode.