Firstly, thank you for expressing an inquiry and not making accusations toward my mental status as most do when their assumptions are challenged.

Any countries that are experiencing “monetary” inflation do not have control of their debt with a sovereign currency (Euro) or supply shortages and supply chain disruptions have caused the money supply to bid up scarce key resources (Venezuela). As long as resources and labor exist to accomplish goals money is deployed for, production will be increased to maximum potential before prices are increased. This can be perverted via government actions, such as allowing extended patents or consolidation/price-fixing, but it remains a constant truth in a competitive market system.

There is no valid relationship between the total quantity of “fiat” money in circulation and inflation, which is the definition of “monetary” inflation. Any inflation in such an economy will be the result of resource shortages, not the money supply, and would have occurred regardless of the money supply. The association of inflation and “printing money” is a common mistake made when the issuing authority increases the money supply to enable people to purchase higher-priced goods, but the money creation is the following factor, not the cause.

We experienced this in the ’70s with the oil embargo. Because oil was so critical to our economy, fueling every aspect of production and delivery, the resulting money creation appeared as causing monetary inflation, but it wasn’t. It would have been much better to simply allow the government to act as a broker for oil and take any losses necessary to stabilize prices at Treasury where they could have been absorbed externally from the private sector economy.