Yeah, I suppose so. I was thinking the solution might be to go back to the gold standard. But the more I thought about it the more I realized no one could ever be stupid enough to want to do that.
If the international trading system required its accounts be settled with gold, the huge US trade deficit would have to pay for imported oil and chinese consumer goods with gold, not to mention interest on foreign held Treasury debt. That would lead to a massive contraction in the money supply, a deflationary spiral, unemployment, shortages of cash and would probably just end in conversion back to a fiat currency anyway just to relieve the social and political instability that would result.
Now what you really want is the purchasing power of money to be stable. Unfortunately, things like gold or silver can't be stable since their values fluctuate with changing supply and demand.
What we really need to end inflation is for everyone in the world to start using the same global currency.
What if everyone in the world used the same currency? Sounds like a simple idea But like many simple ideas, it would bring some nasty unintended consequences. The Answer Desk.