Money supply is not the most important statistic for inflation as it is a catalyst but monetary demand is the driver. There is a correlation because there comes a point where excesssive money supply triggers a loss of monetary demand, which is the experience of inflation itself. A lack of demand entails a high money velocity, which is how Millei addressed the inflation problem via limiting ATM withdrawals.
Money supply is not the most important statistic for inflation as it is a catalyst but monetary demand is the driver. There is a correlation because there comes a point where excesssive money supply triggers a loss of monetary demand, which is the experience of inflation itself. A lack of demand entails a high money velocity, which is how Millei addressed the inflation problem via limiting ATM withdrawals.