creating supply.. hmm
so this is not bitcoin at all and nothing to do with making bitcoin stable, and more so to control volatility of an altcoin you create.
ok got it.

so when there is demand, you create new supply.. ok well your altcoin is now not deflationary but just another fiat emulator. and has lost its purpose as a competitor to bitcoin.

though maybe using some technologies of blockchain i presume, it wont be a replacement of bitcoin, but more so aimed at updating the fiat system

im sure a government may adopt your EMU coins as a national currency(maybe). where supply is no longer created via credit agreements, but instead the demand the population.