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No, an increase in the money supply directly leads to inflation (other things being equal, notably the velocity of money).

It's right there in the terminology: money supply. What happens when the quantity supplied of a good increases? With a constant quantity demanded, the price goes down. So it is here: if the quantity of money supplied increases, the value of that money decreases.

Thus, paying one's debts with inflated currency means that you're giving yourself a discount off the amount you owed. And that creates lower safety/willingness to lend.



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