What happens when there is a shortage of dollars? [Recent fed actions]

Today's Fed action makes it clear that there is a shortage of dollars across the economy and that the Fed will do literally anything to end this shortage of dollars.

When there is a shortage of dollars across the economy, what are the consequences?

I'm hoping this can be a more academic discussion than political (there are other threads for the latter), so please feel free to link to research or expert theory.

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