One of the biggest myths in economic theory and a curse in the practice of economic policy is the idea that by increasing money supply and thus „stimulating“ the economy, one can quicken economic growth. Another myth on a similar scale is to do with a process opposite to inflation – it is on deflation. In his commentary published in the weekly magazine „Veidas“, LFMI‘s Policy Analyst Vytautas Žukauskas explains deflation and writes that a natural deflation is a necessary adjustment of the market to changing economic conditions, while the government‘s attempt to scare the public with a bogeyman of deflation when carrying out inflationary economic policy is unfounded and disastrous.