Who decides how much money to create? The govt clearly has an incentive to create more money, thereby not only increasing their revenues, but causing galloping inflation.
The government would be held responsible.
If the government created too much money, there would be inflation. If it did not create enough, it would stifle economic activity.
ANs lets face it, there is inflation now. The Fed just won't admit it.
We would have to be vigilant by electing congressional representatives that would watch the government's printing of money.
That was the way it was originally.