Theoretically, yes central banks can print money and inflate forever. What can stop central banks from endlessly inflating? A number of theories have been developed. However, hyperinflation is the only thing that will stop the central bank from inflating.
Here’s Rothbard on the continuation of fiat currencies:
Here’s Rothbard on the continuation of fiat currencies:
I am not saying that fiat money, once established on the ruins of gold, cannot then continue indefinitely on its own. Unfortunately … if fiat money could not continue indefinitely, I would not have to come here to plead for its abolition.[mises.com]
Here is Mises' on when it ends:
If once public opinion is convinced that the increase in the quantity of money will continue and never come to an end, and that consequently the prices of all commodities and services will not cease to rise, everybody becomes eager to buy as much as possible and to restrict his cash holding to a minimum size. For under these circumstances the regular costs incurred by holding cash are increased by the losses caused by the progressive fall in purchasing power. The advantages of holding cash must be paid for by sacrifices which are deemed unreasonably burdensome. This phenomenon was, in the great European inflations of the 'twenties, called flight into real goods (Flucht in die Sachwerte) or crack-up boom (Katastrophenhausse). [mises.com]
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