why the state does not always make money, because if a country is printing too much money, the value of that currency will go down so it will cause more problems, that's why they prefer to owe rather than make money
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.
Totally agree. If a state prints more money, then it creates inflation. Printing more money could create more problems than it solves. With lots of money circulating the country, the money devalues because the supply of goods is in shortage.