This sounds awfully a lot with stagflation.

How can money which can't be spent hold value?

Stagflation is what happens when the central bank engages in expansive monetary policy but there are barriers to starting companies or working at jobs. This describes American healthcare, education and housing pretty well but it's a long term trend.

Think about it. The fed gives a bank money, the bank gives money to you so you can build a house and then the city denies you the construction permit. You decide to just buy an existing house instead.