What are some limitations on the money expansion process?

Regarding the process of expanding the money supply, in
theory, the government could expand the money supply as much as it wants by simply
creating more money.  However, there are at least two limits on this
process.

One limit is inflation.  If the government simply
creates too much money, inflation will occur.  The inflation will eat away at the value
of the money that the government has created and will, thereby, reduce the real
expansion of the money supply.

A second limit is the value
of the money multiplier.  For example, the government can try to create more money by
lowering interest rates so that more people will borrow.  But if people are not willing
to borrow (because, for example, businesses are afraid to expand), the multiplier effect
for any increase by the government will be reduced.

These
factors limit the money supply's ability to grow.