>>Eventually we would be all happy, grow through cycles, and nobody will ever have to pay any of original debts because consecutive inflation cycles will reduce them to peanuts.

LOL

As much as anything else, my response was because people were proposing easy answers. So I proposed an easy answer of my own. At least mine has a chance of success. ;-)

FWIW, a certain first world country has no capital gains tax. This has led to a huge focus on real estate investment that contributed to spiraling housing stock inflation that the Reserve Bank controlled by increasing interest rates, which raised the currency value as foreign purchasers pursued the increased returns, with the increased exchange rate making life easier for importers and harder for exporters. The point is that the system is broken when Reserve banks have only clumsy counterproductive instruments to control inflation for reasons that sound less and less compelling while banksters continue to extract their giant share in exchange for nothing. While those who benefit from the status quo predictably appear on advisory boards and around board room tables that perpetuate the system, I cannot think of a single reason why the wider citizenry that owns the financial system would want this.