[c7b]

Think about it: if inflation is caused by a higher growth rate of the money supply than the real output growth rate, as you suggest, then how would higher prices change anything about that? The money that you leave in the shop doesn't leave the system, it just flows to employees, suppliers and owners of the business, ie to other people. It's still very much in the system, the money supply hasn't changed at all.

Inflation is anything but self-correcting, as countless episodes of hyperinflation have demonstrated: a thousand percent a year, ten thousand, ten billion percent - we've seen it all [0]. And that is the real problem with inflation: it truly has no upper bound. And above certain levels, it's very hard to bear.

[0] https://en.wikipedia.org/wiki/Hyperinflation

[rogersnm]

> how would higher prices change anything about that?

Higher prices reflect a new equilibrium between the quantity of money and the quantity of goods and services being produced. Until that revised equilibrium is reached, you generally suffer from shortages of goods and rising prices.

> It's still very much in the system, the money supply hasn't changed at all.

The money supply doesn't need to decrease for inflation to stop, it just needs to stop increasing on an output-adjusted basis (and even then you need to wait for the equilibrium to be roughly reached before price levels stabilise).