Uncle Milt's Theorem

Uncle Milt, socialist banker, writes about a scenario when only fiat money from a central authority will be used in exchange. The issue was inflation and interest rates and nominal rate.

My hydraulic view:
Expected inflation will float to the interest rate at the long term end of yield.  This is common mode,  stable expected inflation floats to the top and gets calculated once.  That means governments borrow long with a penalty. But governments are horrible at managing short term budgets.  Congress is certainly more worthless under an inflation regime.