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When people demand products and services they borrow, which creates money. In exchange they promise to pay which also means they promise to work in the future.

Persistent inflation generally happens when an economy runs out of people. Higher interest rates basically tell people to buy less or work more. The balancing act isn't between money and products but rather between the supply and demand for labor.

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> Persistent inflation generally happens when an economy runs out of people.

While there is a short run tradeoff between unemployment and inflation, it has not been observed in the long run. The Phillips curve was contradicted the 1970's and flatlined in the 2010's.

Persistent inflation happens when central banks are no longer trusted to manage M2.

Inflation was an issue even before the existence of central banks though.

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