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If the government is small enough, the rate of inflation would be smaller than other currencies.

If new cash was created only by government expenditures, and not by a lending model like the Fed, I can easily imagine a smaller inflation rate than any other currency. Just limit spending to be a small percentage of the previous year's growth in GDP.

Then people would avoid taxation in other countries and inflation in other currencies by holding this currency.

In a libertarian sea-steading micro-nation, the government would spend money on the police, courts, and prison (though banishment would be a common punishment). The police could be a few prefects who control robots.



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