Money Supply and Inflation

The general price level is indeed correlated with the money supply.

An incerease in money supply leads to
"too much money chasing too few goods."

To compete goods, people are able and willing to pay a higher price.
This pushes up the price leve of the goods, causing inflation.


In other words,The supply of money rises,
the 「price」(value/purchasing power) of the money falls.

In order to buy a given amount of goods,
we may pay more depreciated money in competition.

increase in money supply leads to lower interest rates
stimulates investment and consumption
aggregate demand increases, leading to higher prices.