[joe_the_user]

A fine summary except...

.. what does a rice farmer in Northern China do when the government gives him 1000 crisp dollar bills ("or their electronic equivalent")?

[jcampbell1]

He should go back to farming. He now knows he can spend the 1000 bills, or gold coin, or whatever at a later date when he so chooses. When the time is right, the $1000 dollars can be used to pay his daughters college tuition, or buy a tractor. It doesn't matter, the only important thing is "when the time is right." It is an economic mess when ordinary people can't time shift their spending. This is why good governments guarantee deposits, and keep inflation low.