First and foremost, I apologize if this question is posted in the wrong section. I wasn't sure where to place it and figured it was at least tangentially related to math (and that the mods/admin would re-route my thread topic to a new location if appropriate ). On to my question: Something I've been conceptually struggling to understand is why printing money leads to inflation. We can take the U.S. as an example. If the government decides to print more $10 bills, for example, why would that affect the value of my own $10 bill? By analogy, I can understand that if we have an apple pie and it is divided into three parts and my parents and I each have one part, then re-dividing the pie into four parts (with the "extra" part given to a stranger) would make each individual slice smaller for me and my parents. However, that's based on an actual pie existing. Money in the U.S. is just a piece of paper that we arbitrarily assign some value to. It has no worth other than what we assign to it and we're also no longer on the gold standard (since the 1970's). So where does the decrease in value come from?