Is it perhaps not true that before fiat money inflation was adding one or millions of monetary units to the money supply With the advent of fiat money what you call creating money out of thin air a reality or fact that you are in total denial about although the whole world economy operates like that and there is no sign that it is going to change even more in denial than you accuse us mainstreamers of so prices rise as the result of a complex of economic activities at the same time the money supply increases as well as a third factor operating at the same time that is actual new wealth created in the economy Since only a specific level of money supply is required at any specific level of wealth in the economy the rise in the general price level indicating inflation is the way inflation is revealed as well as measured