I think liquidity might have been the word you were looking for, but your example was not an increase in money supply. Creating money and storing it in a bank a

I think liquidity might have been the word you were looking for, but your example was not an increase in money supply. Creating money and storing it in a bank account increases supply. Creating money and adding it to a banks reserves increases supply. Withdrawing cash and permanently storing it somewhere decreases supply. Increasing reserve requirements decreases supply. If the amount held in reserve goes up because a bank doesn’t want to loan, or charges too much for it, that decreases supply. Inflation is entirely about the supply and demand for money. You were just calculating it wrong.