I think human nature (and business nature) would take over, and people, and businesses, would think "people have all this money so a higher price for goods and services are reasonable". After the big home buying boom of a few years ago, millions? of people had equity from selling their houses, and then the price for having various home improvement projects went way up due to a combination of limited contractors to meet the demand, and I think a lot of the increases in prices at places like Home Depot was due to that. There is no way a previously priced piece of PVC pipe at 75-cents went up to $2 due to "inflation". Ridiculous price increases in lumber and other building materials happened to, and the increases were way above the inflation rate.
What if it was gold backed tho. I dont know enough about zeeconomy to know
I think human nature (and business nature) would take over, and people, and businesses, would think "people have all this money so a higher price for goods and services are reasonable". After the big home buying boom of a few years ago, millions? of people had equity from selling their houses, and then the price for having various home improvement projects went way up due to a combination of limited contractors to meet the demand, and I think a lot of the increases in prices at places like Home Depot was due to that. There is no way a previously priced piece of PVC pipe at 75-cents went up to $2 due to "inflation". Ridiculous price increases in lumber and other building materials happened to, and the increases were way above the inflation rate.