Whenever currency is printed, there is a larger pool of avaliable currency. However, the goods and services within the country stay the same. Thus, naturally, goods and services will cost a higher price in order to have the same purchasing power (relative cost) as they did before the increase in currency supply.

that's why holding paper money is dangerous. If i talk about indian currency, 10 rupees had a very good value in past but now 10 rupees is like 1 rupee. So after doing FD in your bank you thinking that you are the smart person then you are wrong here because instead of profit, you will loss your money and bank will take the benefit from your fund.

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