What happens when too much money is in circulation?

When too much money is in circulation then the supply of money is greater than the demand and the money loses its value. If the government simply printed more money when they needed it, that money would be worth less and less. In the global market, this would make your economy less competitive. If the US government had too much money in circulation, for example, the US dollar would be worth far less than the money in other countries. If the value of a dollar was less, it would also cause prices to rise inside the US. If each dollar has less value, then a business owner has to charge more to make any real profit.