As a follow-up: Let's suppose that person A has $1000 under his mattress, and person B has $1000 in a “safe” bank savings account.
Now hyperinflation hits. Person A's mattress $1000 rapidly becomes worthless.
Historically, is person B that much better off? Will his bank keep raising deposit rates fast enough to at least dampen the hyperinflation effect? Or is person B ruined as well?
Both are hurt by holding cash. Passbook holders will be only slightly better off as their rates will creep up at a glacial pace so they’ll essentially be ruined as well. Bondholders will take a bath on the value of their holdings but that’s another matter. The rates of various forms of money market accounts will rise fairly quickly in response to the general increase in the level of interest rates.
At least the guy with money in his mattress HAS the money.
The guy with his money in the bank will have a hard time withdrawing it.