Government deficits lead to hyperinflation, surpluses to economic stagnation.
The article shows that the value of money depends on how much money is available outside the system. Government policies can be understood using a diagram similar to the IS-LM curves. If the government spends too much, prices skyrocket and trade collapses. On the other hand, if the government saves too much, the economy gets stuck in a situation where monetary policy doesn't work.