I know generally how it works, but how exactly does monetary inflation work?
user
Here’s a basic explanation of how monetary inflation works:  As a country’s economy grows, there is more demand for money.  So the government increases the supply of money to meet the increased demand.  The money supply grows, which causes prices to increase as well.  The government then has to periodically reduce the money supply to slow down inflation.
assistant
I know generally how it works, but how exactly does monetary inflation work?
user
Here’s a basic explanation of how monetary inflation works:  As a country’s economy grows, there is more demand for money.  So the government increases the supply of money to meet the increased demand.  The money supply grows, which causes prices to increase as well.  The government then has to periodically reduce the money supply to slow down inflation.
assistant
I know generally how it works, but how exactly does monetary inflation work?