if there is only $100 in town and cigarettes are $20
you print another $100 cigarettes will rise in price to $40 dollars because you charge what the market will bear. t does not create more jobs or more demand, it just raises the price of goods and services.

Why are you assuming a limited supply of cash and an unlimited supply of cigs?

In reality, it appears that *some* cig makers will jack up prices, but others will make more cigs (if they have the capacity). So, you get both inflation and more product generative activity.

Whether this is math or psychology, I don't know. I hear economists fight over similar issues.