And between every dollar being backed by a bushel of potatoes or a dentist appointment and hyperinflation, lies a vast gap of other possibilities. For example dollars backed by future productivity that people believe will materialise which doesn’t exist today. If you factor in debt and look at fiat as a form of debt it should become more obvious why you can create money today that enables people to do work which they otherwise wouldn’t, without causing inflation, let alone hyperinflation, under the assumption of available real resources (labor, tools, metal, land, knowledge, etc).
And between every dollar being backed by a bushel of potatoes or a dentist appointment and hyperinflation, lies a vast gap of other possibilities. For example dollars backed by future productivity that people believe will materialise which doesn’t exist today. If you factor in debt and look at fiat as a form of debt it should become more obvious why you can create money today that enables people to do work which they otherwise wouldn’t, without causing inflation, let alone hyperinflation, under the assumption of available real resources (labor, tools, metal, land, knowledge, etc).
But you can’t just assume those real resources exist, especially if you have just triggered a brain drain and disrupted your economy.