Inflation encourages spending, but also reduces the value of money. The loss of value can be avoided by conforming the coin to a fixed supply, even as new coins are minted. This is achieved by simply multiplying account balances with the factor fixedSupply/totalSupply.
The total money you own becomes a ratio of the total supply (how much of scarce supply you hold), and an exact way to represent that ratio is then artificially imposed on the coin just with the factor fixedSupply/totalSupply (as humans have easier time relating to fixed value over time. ) The "human readable" coin is the coin after conforming it to a fixed value.
This simple hack enables "taxation" by minting new coins, wealth redistribution without actually having to collect taxes from individual entities, instead collecting tax from the money supply itself. Entity collecting tax simple mints totalSupply*tax new coins. To avoid unfairly penalizing people with savings at the time tax is collected, tax can be collected more frequently, every second for example.