What anchors inflation?Inflation equals bigger, in this case a bigger numerator or smaller denominator.
The denominator shrinks, fewer goods chasing same dollars. The dollar is losing market share to home production, black market labor, gold, bitcoin, discount coupons, tax evasion, and foreign currency.
The dollar is a reserve currency with interest charges swamping governments everywhere in USA. Federal debt service interrupts economy, too many 'revokes'. So global and local finance adopts non dollar pricing.
The solution for central banker is to go full sandbox and sandbox can price entry and exit to TBTF system, remove all the arbitrage. Then turn your knob and we can fair bet it. Fiaters love sandbox. But government accounts are more accurate.
How does the default machine work?
The basic idea is the swamp never marks to market, hence there are unreported but real Fed losses. The consumer price inflation, since a few years after Nixon shock is all reversed by contract, the banking contracts defined by law have shifted natural Fed losses and gains around, never marking them. It is like a huge blockchain of debt all the miners bottlenecked.
Better method
Currency issuers develops its own risk, issuer tempts borrower and lender to snooker the issuing contract. Each bit of new insider priced is more goods transacted. All you need are agents who prefer shorter lines.
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