But unless it was tied to the inflated dollar, nobody would have money. And if it was, people with the inflated, worthless dollar would just exchange what they had, inflating the new dollar similarly. It's a no-win situation.
The Euro is going nowhere. Look at Ireland, Spain, Greece, and Portugal for an idea of how that experiment is failing.
We can not print money to end our problems. It would be a financial nightmare. Any economic validity we had would be lost. And how to distribute the new currency? Would it be tied to the old -- an infeasible solution? Or would it be tied to a new source of wealth? In that case, wouldn't all the money held by all the people with dollars the world over become worthless? Imagine the economic pandemonium. How could one buy bread with no money to do so with?
Stable economies require stable markets. The US from its inception has understood this: Alexander Hamilton argued that the US government needed to repay its war debts, lest foreign countries cease to invest in the US -- for if there is no return on an investment, they would stop making investments.
The government is already printing money, you see. This is why the Finance Minsters of Japan and Germany, the President of China, and Russia's Prime Minister have heavily criticized American fiscal policy. All of the world's wealth is held in dollars and commodities (finite resources -- i.e., gold, oil, wheat). As we devalue our dollar, countries cease to use it as they stop trusting it.
That'd be fine, though I haven't looked into that well enough. It incents people to save more and spend less.
I'd couple that with tax cuts for most activities. A flat tax suits me just fine. We spend so much money on this complicated, inefficient system away that you'd wish that it incents businesses to expand here -- but no, it does the opposite.