Printing money without backing is not deficit spending! We're all well aware of the money supply, M1 / M2 / M3, velocity of money, etc. It's important for mone

Printing money without backing is not deficit spending! We're all well aware of the money supply, M1 / M2 / M3, velocity of money, etc. It's important for money to not get tight when the economy slows down, and it's important to tighten up the amount of money when the velocity increases again. But this is neither deficit spending nor printing money without backing! Inflation is can come from a social psychological phenomenon around expectations. If the cost of living goes up in a surprising way, you feel the pinch. You want more money. Maybe your employer gives you a raise, and raises prices to compensate, reasoning that other things are also going up in price. The risk is this creates a self-propagating loop (which in turn does to a degree depend on accommodating institutions that don't restrict monetary supply). You can trigger inflation through loose monetary policy, sure, and you can dampen the cycle by restricting the supply of money, and that's been the main function of independent central banks for most of the latter 20th and 21st century. But inflation is literally just increase in the cost of living. It's a symptom, not a disease. It admits multiple explanations.