Theorycrafting a game economy against inflation

I feel many here seem to misunderstand what inflation is or how to battle it. In normal economic systems production - the amount of items or actual wealth - is a given, or at least steered long term strategically. On the other side printing of money is controlled short term (together with taxes, interest etc etc) to offset the difficult to control long term marco-economic aspects. In reality this is not that simple but it IS a system that offsets difficult to control aspects (production, demography, competitiveness) with controllable factors (money printing, interest, taxes). Which means in the IRL case inflation always means currency losing its worth.

The big thing in POE everyone fails to see we don’t have one single form of inflation, and both aspect of the inflationary system are fully controllable, and controlled separately.

There is no one inflation here; we can either have currency inflation (where currency loses worth) or item inflation (where items lose worth due to over-abundance). Because of this unique economic system where both are in full short term control battling inflation can be done by drop rate modification quite easily, especially because the currency also has a built in sink by being used.
• If there is currency-inflation (where currency loses worth) tweak the balance towards currency-scarcity by decreasing currency drops in relation to item drops.
• If there is item-inflation (where items lose worth) tweak the balance towards item-scarcity by decreasing item drops in relation to currency drops.

Even better, this system can balance early vs late game.
If you want early game players to spend currency, tweak drop rates more towards currency in campaign and force item drops in maps.

This is also how the “real” economies work. The early game workers farm and spend, the late game industrialists produce and sell, this is also the system of inflation we have IRL

Currently the system (drop rate ratio) is the same for both early- and late-game and this from an economic system perspective is actually quite weird. However this is offset by currencies having their own sink; crafting, but I feel this does cause the discrepancy we see as “inflation”.

As a thought experiment, let's turn it around. Early game only items drop, late game only currency drops. This economy would be extremely stable, because nobody will spend much on early game items, and the rich late game guys mostly spend (and delete) their currency on crafting because that is the only way to make something to sell to the rich early game users. Surely you'll see currency inflation, but that's purely because of item scarcity, and with the built in currency sink would only motivate users to use currency instead of trading. Which coincidentally is also much closer to the old-school bartering GGG had some "vision" about, bartering simply means both monetary sides of the deal have practical use.

I know all of this is a gross simplification, with thousands of nuances and acksualies but nonetheless it IS a systemic way of thinking I’m not sure the balancers of this game understand well enough.