Inflation is part monetary, part psychological, and once the peoples expectation of inflation gets established, the fiat currency is doomed.
>How Fake Money Saved Brazil
>This is a story about how an economist and his buddies tricked the people of Brazil into saving the country from rampant inflation. They had a crazy, unlikely plan, and it worked.
>Twenty years ago, Brazil's inflation rate hit 80 percent per month. At that rate, if eggs cost $1 one day, they'll cost $2 a month later. If it keeps up for a year, they'll cost $1,000.
>In practice, this meant stores had to change their prices every day.
>The four economists wanted to create a new currency that was stable, dependable and trustworthy. The only catch: This currency would not be real. No coins, no bills. It was fake.
>"We called it a Unit of Real Value -- URV," Bacha says. "It was virtual; it didn't exist in fact."
>People would still have and use the existing currency, the cruzeiro. But everything would be listed in URVs, the fake currency. Their wages would be listed in URVs. Taxes were in URVs. All prices were listed in URVs. And URVs were kept stable -- what changed was how many cruzeiros each URV was worth.
>Still, people used URVs. And after a few months, they began to see that prices in URVs were stable. Once that happened, Bacha and his buddies could declare that the virtual currency would become the country’s actual currency. It would be called the real.
>"Everyone is going to receive from now on their wages, and pay for all the prices, in the new currency, which is the real," Bacha says. "That is the trick."
>And, basically, inflation did end, and the country's economy turned around. In the years that followed, Brazil became a major exporter, and 20 million people rose out of poverty
https://www.npr.org/sections/money/2010/10/04/130329523/how-fake-money-saved-brazil
