Doesn’t that make inflation worse?
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I don’t have the exact answer because I’m not expert, but my country had 96% inflation last year, so I know one or two things about it. One of the causes is the following: Printing money.
You see how governments handed out checks to every person during the quarantine? Well, countries can print money and put it into circulation. But the thing is that money bills need to be backed up against some other thing (gold, or US dollars in many countries). So, lets say you have 10 pieces of gold. You print ten 1 dollar bills and each bill will buy the same amount of goods than 1 piece of gold. Let’s say you print ten more bills, but you have the same gold. Now each bill’s value is half a piece of gold. And so on…
The problem isn’t that goods get more expensive, is that money decreases its value.
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