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With reference to your graph, here's what INVESTOPEDIA says on the subject of "Money Supply", ..... and later on in this post, how excessive "Money Supply" can fuel inflation and lower the purchasing power of one's cash :-
The Federal Reserve is the central bank of the United States and is arguably the most influential economic institution in the world. One of the chief responsibilities set out in the Fed's charter is the management of the total outstanding supply of U.S. dollars and dollar substitutes. The Fed is responsible for creating or destroying billions of dollars every day. Money Creation Mechanism
In the early days of central banking, money creation was a physical reality; new paper notes and new metallic coins would be crafted, imprinted with anti-fraud devices, and subsequently released to the public (almost always through some favored government agency or politically connected business).
Central banks have since become much more technologically creative. The Fed figured out that money doesn't have to be physically present to work in an exchange. Businesses and consumers could use checks, debit and credit cards, balance transfers, and online transactions. Money creation doesn't have to be physical, either; the central bank can simply imagine up new dollar balances and credit them to other accounts.
A modern Federal Reserve drafts new readily liquifiable accounts, such as US Treasury's, and adds them to existing bank reserves. Normally, banks sell other monetary and financial assets to receive these funds.
This has the same effects as printing up new bills and transporting them to the bank vaults, only it's cheaper. It is just as inflationary, and the newly credited money balances count just as much as physical bills in the economy.
There is little doubt that there is a Connection between "Money Supply" and "Inflation".
To put it into simplistic terms .....
Needless to say, there are others aspects, factors and repercussions involved.
Here are some of those important ones as enunciated by the late Professor Milton Friedman in the space of 2:07 minutes .......
In my opinion TWO of the things that Donald Trump did Exactly Right soon after he entered the White House were :-
1) He Reduced Taxes, 2) He Got Rid of lots of "business stifling" Government Regulations.
And as a result the American economy BOOMED over the last 3 years, prior to this unforeseen COVID-19 pandemic.
The next major action that he needs to work towards is to CUT GOVERNMENT SPENDING AND THE SIZE OF GOVERNMENT, the latter of which chews up billions of Tax Dollars.
