It also determines the supply of and demand for capital goods. Santamaria understands none of this. Monetary cranks are forever confusing credit with capital. Because they believe abundant credit would eliminate interest they then assume an equally abundant supply of capital would appear. Credit is not capital.
Capital comes from savings and savings are forgone consumption.
Gratuitous increases in credit are not additions to savings. When credit expansion gets under way the rate of interest is artificially lowered and that expands the demand for more credit. The newly created credit did nothing to increase real savings. With prices rising, foreign exchange problems worsening and the current account deteriorating the government will then impose a credit squeeze. And all of this because it believed in the cheap money fallacy.