I just read Thorsten Polleit's article: "Thee will be (Hiper) Inflation." It was a very good article. I followed the thought path as best I could. I came upon a couple of questions though. I'm not real clear about the difference between excess reserves, and equity capital.I also came away with questions about the following paragraph. So commercial banks may wish to monetize government debt, as the latter does not require putting equity capital to use. The government then spends the additionally created money stock on politically expedient projects (unemployment benefits, infrastructure, defense, etc.), and the money stock in the hands of households and firms rises. When a commercial bank monetizes government debt, how does it do this, and how does the process create new money?