That's more of a money management issue than a fiat issue.
The same situation could be happening in a Bitcoin standard economy.
Some broken fiat examples that I see:
The US banks since March 2020 don't need to have any reserves. Zero percent.
As announced on March 15, 2020, the Board reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions.
So, at a national level the banks create more money, and internationally institutions like the IMF create more "proto-money" that is then swapped for fiat money.
That's more of a money management issue than a fiat issue.
The same situation could be happening in a Bitcoin standard economy.
Some broken fiat examples that I see:
So, at a national level the banks create more money, and internationally institutions like the IMF create more "proto-money" that is then swapped for fiat money.
Social insurance. The biggest of all 2nd layer pozis ever invented my mankind. Needs more and more inflow of inflationary fiat to survive.