Inflation generally refers to: money because the money supply is greater than the actual demand, resulting in a general rise in prices for a period of time. The essence of total social demand is that total social supply is greater than demand and far less than demand.
In modern economics, inflation means an increase in the overall price level. General inflation shows that the market value or purchasing power of money decreases, while currency depreciation reduces the relative value between the two economies. The former is used to describe the domestic currency, while the latter is used to describe the added value of the international market. The debate on relevance is a branch of economics.
The law of paper money circulation shows that the issuance of paper money is nothing more than using a symbol to represent its gold and silver currency. Once it exceeds this amount, paper money will depreciate and its price will rise, thus causing inflation. Inflation will only occur under the condition of paper money circulation, and this phenomenon will not occur under the condition of gold and silver currency circulation. Because the value of gold and silver money itself, as the function of storage means, can spontaneously adjust the amount of money in circulation to adapt to the money supply needed for commodity circulation. Under the condition of paper money circulation, because paper money itself has no value, it only means the currency symbol of gold and silver and cannot be used as a means of storage. Therefore, if the paper money in circulation exceeds the necessary number of commodities, it will depreciate.