If you want small government and no inflation, you want to give government the power to print interest-free money and to take away government’s power to borrow money printed as interest-bearing debt. The powerful forces of usury would end the search for easy profit in the printing press of private banks, wasteful government spending, and the interest-bearing treasury bonds associated with wasteful spending. The powerful forces of usury would start to work in the same manner to end wasteful spending and stop the government from printing interest-free money. When private banks print the money as interest-bearing debt, the usurer is in favor of the printing press despite the inflation. When government borrows money as interest-bearing debt, the usurer is in favor of wasteful government spending. When the government prints interest-free money and no longer borrows money from the usurer, the usurer is no longer interested in printing money, is no longer interested in wasteful government spending borrowed at interest from the usurer, and would no longer tolerate inflation. Since the printing press of money would serve the public interest rather than the usurer, the usurer would seek profits in corporate bonds, strengthening corporate power in honest means rather than through the force government.
Furthermore, if you’re a Libertarian, you would want separation of government and commodity markets. No Libertarian should want government to be commodity traders, to collect taxes in gold, to mint gold, and to warehouse gold. No Libertarian should want the banks chartered by government to emit bills of credit to corrupt the commodity market of gold either. You do not want government deciding that any commodity should be money. All commodities, especially a rare natural resource like gold, should remain in the free market where Libertarians can buy and sell the commodities without the corrupting influence of government. No Libertarian should want a gold standard since that is state intervention in free markets in the worst possible way. If you want to use gold as a store of wealth, you do not want gold to be declared legal tender. You only have to look at the long history of the dollar in the United States to see how many times the government corrupted gold markets.
Libertarians who fear inflation should lobby to end the printing press of private banks, should lobby to end the government’s power to borrow, and lobby for the power of government to print money. The invisible hand which drives wasteful spending and inflation would work to end wasteful spending and inflation if government had the power to print interest-free money rather than borrow it from the private banks which print the money as interest-bearing debt.