Monetary Freedom: Malinvestment and Monetary Equilibrium

My view is that only an excess supply of money can possibly lead to malinvestment. If the quantity of money and supply of credit rises to match an increase in the demand to hold money, the consequences are the same as an increase in the supply of credit due to an increase in the demand for bonds.

via monetaryfreedom-billwoolsey.blogspot.com

Bill Woolsey sets out the monetary equilibrium approach in a lengthy article. Also see the comments to Steve Horwitz's response.