The way you get people to spend their coins is to increase the price of the coin or to give them incentives to spend. PoI in a way is a lot like those reward points you see in credit cards / debit cards and people love that stuff.
I respectfully disagree. Increasing the price of the coin encourages people to hoard, not spend. If people think time will increase their wealth, they will not spend. That is why deflation is such a threat. In deflationary economies, spending power increases over time, and consumer spending drops precipitously.
Inflation has the opposite effect. It erodes spending power over time. While it's bad for an individual, it's healthy for an economy. It makes people less likely to save and more likely to spend because it causes spending power to decrease over time.
Actually there would still be immense inflation in a fixed total supply. Leave the total supply alone.
Fractional Reserve Banking has been around since 6000 BC (when people deposited their gold into the prototypical banks in return for scrip and there were more IOUs than reserves). FRB in the modern era means banks can print immense fortunes out of thin air and this is the cause for a lot of inflation in our world.
FRB won't go away just because we have digital currencies. There's even fractional reserves in the world's gold supply (more gold exists on paper than what actually exists).
Then there's the inflation / deflation cycles that occur from velocity of money and market conditions (war, droughts, overproduction, underproduction, et cetera).
As I said before inflation is a tax on the poor and it simply doesn't belong in a digital currency and should be minimized (why would the mainstream adopt digital currencies if they can preserve their wealth better through things like Vanguard Investments, real estate, et cetera).
I am also against inflation for reasons TaunSew has stated.
Inflation will add more confusion and instability to a young market like NEM. Not only people who own alot of NEM will save. Inflation will also affect the guy who owns only .1 NEMstake. Saving is not a bad thing. Spending is not a bad thing. Keep the market as simple as possible. Average Joe probably will not weight inflation when he buys NEM, but NEM early adopter will think about it alot. This will lead to the latter having the advantage.