Second, for any fiat money there is always an equilibrium with price=0.
That’s not technically correct. If the athourity issueing the fiat money collects taxes than that creates demand for it up to the amount required to pay outstanding tax bills (ie 1% of land value in the case of a property tax). Since property doesn’t produce fiat money itself property owners need to sell goods or services to get money.
So there are low equilibria for fiat money, and unstable equilibria for fiat money, but zero is typically not a natural equilibria
That’s not technically correct. If the athourity issueing the fiat money collects taxes than that creates demand for it up to the amount required to pay outstanding tax bills (ie 1% of land value in the case of a property tax). Since property doesn’t produce fiat money itself property owners need to sell goods or services to get money.
So there are low equilibria for fiat money, and unstable equilibria for fiat money, but zero is typically not a natural equilibria
I agree with your qualification.