you're correct on the too much money, though it's not the goods that we're chasing, rather anything else that represents value. The gold backed currency was lim

you're correct on the too much money, though it's not the goods that we're chasing, rather anything else that represents value. The gold backed currency was limiting because it's incredibly hard to adjust for fast moving market. So by freeing up money supply, we can exploit the full extent of the market. When US print money, since the world values USD, whoever buys USD will pay for that inflation. Since there're not better alternatives, they just kept buying, in a sense US is just exporting capital. So it's no surprise that inflation will be absorbed by USD hoarding entities. say here.. https://ticdata.treasury.gov/Publish/mfh.txt https://ticdata.treasury.gov/Publish/mfh.txt