If we keep making more foobars with the same amount of resources, then the price should come down over time. Eventually you should be able to take the $10 you earned and get two foobars instead of one. But by printing more money the government is taking all of the productivity gains for themselves.

And do we really need them to keep the financial system going? That is, do we need to keep the price of foobars at $10 to keep people from sitting on money? Absolutely not! If somebody out there is selling foobar-makers it always makes more sense to buy the foobar-maker than to sit on your money.

And what about people consuming foobars? They will always prefer to consume now rather than later. Would you rather have an ipod/house/car now or 10 years from now? You can keep the money supply constant, let prices fall, and the difference between the price of a car now, and the price 10 years from now is offset by the fact that you don't have to go without a car for 10 years.

And that's the policy that makes sense anyway. We shouldn't be forcing people to buy cars now OR to wait 10 years to buy a car. They should make those decisions like they make every other monetary decision, based on what provides them the most value.