True, but when the government prints more currency than the total production of goods and services, they decrease the worth of each currency unit.
Let's say I make $10 per hour and with this $10 I can buy 10 widgets. Now the government steps in and prints out a whole bunch of money. I still make $10 an hour, but I am now able to only buy 5 widgets with the same $10.
You can say that you lost half of your hourly purchasing power. You can also say, and I like this one better 'cause it makes me madder, the government just cut your hourly wage by 50%.
Absolutely. Sound money is necessary for a sound economy. If the government adulterates the money, we’re back to barter.
My point, however, is that money is simply a symbol and an abstraction of barter.