Inflation and Printing Money

This diagram presents a simplified case of inflation, where a government resorts to printing money to pay off its debts.

Due to insufficient taxing or overspending, the govermnent eventually depletes its reserves of its domestic currency. This, along with their decision to print money, causes an upward trend in the supply of money and thus a reduction in the value of the domestic currency (i.e. inflation).

To find a more sustainable system, modify the Tax Rate and Total Expenses until the Exchange Rate with the Reserve Currency stabilises.