Exactly right!
This calls for the inflation of the fiat currency.
When they will print more money then it will increase the supply of the fiat thus though the demand grows you will still have lot of supply. This way the circulation will keep on going in negative way. Thus it will do the demonetization of the currency.
Thats why they dont print more.
Agree. It will only get worst. Printing more money doesn't solve anything. It will just cause chaos. And yes it is true, printing more money will cause hyperinflation. It will make money lesser in value. More cash means people do have many to spend. If people have plenty of money to pay and supply gets lesser, this will decrease the purchasing power of money.