@taskmaster4450le "Currency derives its value from the economic produ..."
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Currency derives its value from the economic productivity gained from it. When economies have the ability to expand at a pace faster than monetary expansion, then prices are not impacted (overall). When the economy can expand faster, and money doesnt keep up, then it is going to see a hindering of output.
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Hmmm, still a little confused. Wouldn't money not able to keep up(currency scarcity) not be something advantageous to help tag more production to a little unit of money?. I know the government next step is always to print more
Most governments dont print money. That is a fallacy. The money supply under fractional reserve banking (the currency people use) is done by commercial bank lending. Central banks, which often arent gov't but are close, can print physical cash but that is only a small portion of all money these days.
As for production, doesnt it take money to increase it? If a company wants to expand, more money is required for raw materials, equipment, plants, and labor.
Take that over an economy. The question is whether the economy can expand with the pace of the monetary increase. If the economy is jumping at double digit, that is a lot of growth that needs to be funded.