As soon as agents start to realise that you started to print money, they begin to change their contracts into a harder currency. It has happened in Russia in 1990s, as all contracts were in dollars, because everybody was afraid that the governemnt will print more money. Government fought back, by banning use of foreign currency names in contrats. People created “artifical units”, and everybody knows that any “artificial unit” in a contract = 1 USD. So one could increase price by printing money obly in small extent, as it undermines the believe of agents in your currency, and they will stop to use it.
As soon as agents start to realise that you started to print money, they begin to change their contracts into a harder currency. It has happened in Russia in 1990s, as all contracts were in dollars, because everybody was afraid that the governemnt will print more money. Government fought back, by banning use of foreign currency names in contrats. People created “artifical units”, and everybody knows that any “artificial unit” in a contract = 1 USD. So one could increase price by printing money obly in small extent, as it undermines the believe of agents in your currency, and they will stop to use it.