Banks can print fiat currencies

Where there is deposit insurance fiat currencies enable banks to inflate the currency. The reason for this is that there is no economic reason for banks to not issue more credit than they have reserves. The lack of deposit insurance in a fiat regime means that banks can't cause inflation... but if there is deposit insurance then fiat currencies enable banks to cause inflation. If we assume that governments will generally prevent a bank run if they can then fiat alone is enough to enable banks to cause inflation. Fiat currencies mean not only the government but banks also can increase the money supply unless the government allows banks to fail which is unlikely. The only way to stop banks printing money (if there is a fiat currency) is for the government to let them fail... which makes fiat currencies very dangerous to the economy since the government is inclined to protect the banks. Fiat currencies are dangerous because the government likes to protect the banks. Fiat currencies enable banks to cause inflation because of deposit insurance.