I&#x27;m not sure it&#x27;s not allowed. I can make a bit of paper saying &quot;I, Tim will pay the bearer on demand US$1 * the current CPI &#x2F; 238&quot; and sell it to you for a dollar.<p>Some reasons why inflation free currencies don&#x27;t work very well in practice are if there is a lot of debt in society and the economy turns down it can be useful to inflate the debt away a bit. Otherwise you get Greece. If they were still on the Drachma with debts in that they could just print a bunch more and have the economy back to normal. Instead they owe Euros which have about zero inflation and are basically bankrupt.