This is the reason why:
ed; whoops, forgot the graph
The money has NOT been added to the economy, nor loaned.
It sits in FED.
Thus, printing a qazzilion dollars by the FED, but kept in the FED vault is exactly the same effect as the FED not printing a gazzilion dollars.
Never.Other thing to consider is...there are other causes of inflation. Crop failures, over-population, immigration, monopolies
Crop failures spike prices in CROPS, not systemic across the market.
Supply and demand changes in commodities other than money does not cause inflation.
It creates supply and demand issues in that commodity and adjacent products - nothing more.
A shortage of Ferraris - with their subsequent rise in price - is not "inflation".
Huh?redemptions of the dollar from being a reserve currency
How does spending a dollar cause inflation?
This is true.competition with other currencies
Money is an economic good, and obeys all the laws of economics -no more and no less- as all other economic goods.
The Law of Supply and Demand effects money.
Competition affects demand.
Therefore, competitive currency will affect the demand curve of money.
All of your other "causation" are not relevant at all to inflation/deflation.Huh You can largely look at the supply of money but it is not the whole story.
But as I pointed out above, in this post and previous posts, the supply/demand law commands money, like it does all economic goods.
Yes, supply changes impact money, thus inflation and deflation.
And, as we agree here, demand changes also impacts money, thus inflation and deflation.