With this understanding, we can simplify the equation to: M = P x Q, where the terms are as described above. This can be understood in either macroeconomic terms, in terms of average price level times some quantity measure of all things exchanged, or in terms of microeconomics, as the average price of any particular good, times the quantity of that good, giving the total quantity of money, the number of dollars, (or in general the number of units that P is expressed in. which need not be dollars.) that is being exchanged for that particular good. It can be visualized as the flow of money, and the opposing flow of the good or service, in its own particular channel.
If we rearrange, then the price of any particular good, or of the price level of all goods if we are talking about the economy as a whole, can both be expressed as: P = M/Q. If M increases, and/or if Q declines, the price or a good, or the price level of an economy, goes up.
In our equation: P = M/Q, then, what first happens is that M increases, not as a result of government printing, but as money is taken out of the churn, and put into the real economy. This is mostly rich people panicking, although ordinary people are also taking their money out of the banks. As this process progresses, the economy begins to contract onto essential goods. Thus the quantity Q of goods exchanged for money decreases.
The proper response of government is not to print money in an attempt to stay ahead of it. This merely aggravates the problem and drives the accelerating inflation. While initially, government issued money is not the problem, as the government issues money at an ever greater rate, the entire nominal value of money in circulation does becomes government issued. (In the limit.)
And or course, it can always be that the government actively pursue the destruction of its unit of money. One consequence of this would be to consolidate the gains of the wealthy, and so a government under the control of an oligarchy might do this.
*[Edit:22-04-2020] The activities financial sector don't directly affect the price of things in the real sector, except as the financial sector, because it is the source for nominal profits, attracts and holds money away from the real sector.