Statement one
By injecting more money (M) into the economy, demand is raised leading to more economic growth
On the question of economic growth Nicholas Kaldor explained that economic growth comes from the natural requirement of supply side production enterprises for invesment funds. So the assumption that demand is generated by monetary injections inverts the actual logical sequence of the origin of economic growth1. Such supply side requirements for investment funds tends to go into productivity-enhancing investment and therefore tends to generate counter-inflationary growth. The resulting growth comes from satisfying this supply side "demand". Banks handle this endogenous demand generated by the supply side production sector satisfactorily and there is no need to inject money as exogneous funds into the economy to "generate demand".
1 Kaldor, N., "The new monetarism", Lloyds Bank Review, 1970.
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