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Economics
Quantity Theory of Money
The idea that if you print a lot more money, prices will rise roughly the same amount because too much money chases the same goods.
The simple formula MV = PQ says Money supply × Velocity = Price level × Quantity of goods. If money supply grows fast and output doesn't, prices have to rise.It's like pouring twice as much soda into the same number of glasses — each glass just gets more watered down and less valuable.
Real world: Countries that printed huge amounts of money (like in hyperinflation cases) saw prices explode exactly as the quantity theory predicted.
💡 The quantity theory is why central banks watch the money supply so carefully — print too much and inflation is almost guaranteed.