And yet the fiat system has ushered in unparalleled economic prosperity despite the inflation "problem."  There are many reasons that deflationary currencies were abandoned, but the main one is that they discourage economic activity and slow down economic growth.  If the choice is having a smaller economy anchored by a deflationary currency, or the current monetary-economic model that maximizes economic growth at the cost of minor inflation, I pick the latter every time.  It is only under the latter that we have achieved the level of economic prosperity we have today.  Yes, over decades holding cash is a dumb idea under this model; so don't do it.  But don't pine for an inferior model just because it solves a relatively minor one issue that can be easily avoided.  That's insanity.