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[–] HuginnOgMuninn ago 

That's not enough.

You just explained inflation to me. You explained how within a gold backed currency, inflation can't happen, but it can happen within FIAT money. But inflation can happen in a goldback.

You have not even touched on the most important thing:

https://en.wikipedia.org/wiki/Fiat_money#Money_creation_and_regulation

A central bank introduces new money into the economy by purchasing financial assets or lending money to financial institutions.

Nota bene; I don't give a fuck about how you feel about my interpretation, take responsibility of it and fix it if you wish to improve your communication.