Interesting. My understanding is entirely flipped. I see inflation occurring in specific pockets of the market due to high demand and low supply. For example, housing prices increased from the lack of supply (Covid limited inputs) and high demand from low-interest rates intentionally set by the Fed to instigate spending.

The supply of food prices increased from climate change impacts, Covid shutdowns, and panic buying, and monopolies controlling the price of goods. Nearly everything we produce is finite as natural resources limit inputs.

Wouldn't money's financial backing be the numerous goods and services available for purchase within the economy? In economies with less diversity and size, a low supply of goods and services to spend the money would be an issue, but the US economy is massive. There are many places to spend money. However, if money is saturated within one market this could cause issues if there is a lack of resources available to spend the money.

The Fed supplies the financial market with USDs and banks loan to big corporations and homebuyers, but the average person never sees it. I see inflation as a resource issue and not a money issue; cost-push and demand-pull inflation. I'm trying to wrap my head around inflation from money creation in the US, but the theory doesn't add up.

I've been analyzing the Fed's actions and wrote it about here: https://medium.datadriveninvestor.com/how-the-us-manufactures-a-global-economy-d6c662f59a36