I would agree with you. A currency that does not retain its value, in the most extreme case, is what happens in hyperinflation.

Some of us also claim that there is a difference between money and currency. To those like minded, money is something that holds value, currency is a construct of government that is a substitute for money that sometimes holds its value, sometimes not, depending on the desires of those issuing the currency.

Here is an article from back in 1912 that would have been common thinking of the day but quite foregin to modern monetary systems thinking. I think they had it right, and we have drifted away from sound money.

As mn_feeder pointed out, the currency of today is not even supposed to retain its value. The Fed actually comes out and says they want it to decrease in value every year by 2%. In earlier generations, currency was supposed to retain its value and was tied to something real that made restrictions in such a way as to discourage debasement of the currency. Today we have countries that are actively saying they want their currency to buy less. It is a completely foreign concept to me, but I guess it makes sense to academia.

John