Do you think 200% annual growth is sustainable? Do you think that would make for a useful currency? Why do you think economists consider low (but positive) inflation to be desirable for currencies? Do you think such growth, mixed in with sporadic 85+% drops (aka: high volatility) is a good attribute for a currency?
No, 200% APY in waves is expected as it becomes the reserve currency. Then it grows in value at a rate equal to the growth in productivity, closer to 0%.
States think positive inflation is good, because it's a hidden tax that they profit from. I think 0% inflation is better for all participants.
Yes, I think growth in waves is a great start for a money. Same thing happened with salt, gold, and other commodity monies.