[Zygote]

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And if we're talking about switching to a full reserve system where the currency is backed by a commodity, I think we could expect to see loans a lot harder to come by than they are now or have been. Could be convinced on that though.

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Full reserve system isnt necessary and this would make loans much harder. Actually something that is necessary to take place in the US economy under given circumstances since loans are likely to get uncontrollably more difficult due to creditors lacking confidence. One way or another they need to up their credit and the tax payers/fed are losing the trust of the public and since fed isnt willing to raise rates then the legislators must further back up their currency.

More importantly, the anarcho capitalist perspective is that of free banking though. Where transparent fractional reserve and full reserve banking coexist and compete.

Either way the benefit is that loans are restricted by the wealth of the society to satisfy said loans. Economic consequences and rewards are properly placed. Increased savings allows for increased investment while decreased savings will force a decrease in investment.

Since investment would be tied to commodity savings, investors are much wiser and will not have the means to malinvest the limited resources and production of a society. "Credit systems" like Exsub's do the opposite and hit the bust phase when the limited resource fact becomes public knowledge.

The largest damage of inflation is the distortion of economic calculation for the enduring period so there is always a serious waste in resources that cant be turned back.