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Fiat currency is one of the reasons society has had a lot more stability in the value of money in comparison to any other time in the past. Currencies tied to commodities such as gold, silver, etc have always been more volatile due to supply oscillation, business cycles and periodic bursts of 'pocket' recessions.

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The problem with fiat currencies is that there is just a little too much temptation to print a truckload when there are "emergencies". This often causes hyperinflation or massive inequality leading to the rise of populism and democratic backsliding.

Printing a truckload of currency is often a byproduct of populism. Even without fiat currencies, governments would simply use other methods to debase the value of their coins [1]

[1] https://en.wikipedia.org/wiki/Methods_of_coin_debasement

The constant inflation due to fiat currency is worse than the effects you describe, because it has destroyed more wealth.

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