Holding cash woud indeed be a bad strategy… just like it is now.
Today, whether I hold cash or have my money at the bank doesn’t make much difference.
The value of the “alpha” parameter would determine whether the inflation is hyper or not.
No, inflation is not controlled. You can get into a situation where nobody wants to hold cash and everybody prefers to change their cash into other things and then there’s in hyper inflation.
The danger for hyper inflation is why central banks generally want fight all inflation as it sets incentives for hyper inflation that is hard to control once it starts.
Today, whether I hold cash or have my money at the bank doesn’t make much difference.
No, inflation is not controlled. You can get into a situation where nobody wants to hold cash and everybody prefers to change their cash into other things and then there’s in hyper inflation.
The danger for hyper inflation is why central banks generally want fight all inflation as it sets incentives for hyper inflation that is hard to control once it starts.