[JumpCrisscross]

> Does any of this this theory come with a reference?

You’ve been provided with several in these threads. A good start might be Mankiw’s Money & Banking. It’s a standard introductory text and addresses many of the common misconceptions you’ve brought up.

[roenxi]

Are you sure that book exists? I can't find it with a search or on his publications page [0].

And unless I have the wrong Mankiw, that doesn't look like a 19th century book.

[0] https://scholar.harvard.edu/mankiw/publications?page=3

[JumpCrisscross]

Whoops, I mixed up Mankiw’s Principles of Microeconomics and Cline (or Cechetti’s) Money, Banking and Financial Markets.

The 19th century source is Bagehot. But that won’t make sense without the above fundamentals. (Bernanke’s work on the Great Depression is also a good empirical study on deflation. But again, not worth tackling until after one of the Money & Bankings.)