It is suggested that a National Investment Fund be created which would have the same power to create credit and charge interest on it as the private sector banks. This agency would be empowered to invest money, particularly in long-term, socially valuable, or innovative new projects. The interest it would earn on its investments could benefit the whole community. Saving bonds instead of interest Stable prices could be guaranteed by the creation of a Demand Regulation Policy . It is suggested that this policy would be administered by the National Investment Fund.
Inflation occurs when the same amount of money buys less today than it did yesterday.
It is usually the result of an increase in demand for goods without a corresponding rise in their supply. To expand supply requires increased investment. This goes into building new factories and buying new plant and machinery. Wages are paid to those building the factory, and manufacturers are also paid. Their money goes straight into the economy, and results in an immediate increase in demand before the new goods have been made.