I admit I also liked the idea Knas put forward about factions becoming money sinks. However, then I realised that some factions in the game have a ridiculously excessive amount of power in game already to the point of being nearly game breaking. Even the perception of more, cosmetic or not, would be a bad idea. It's already at a thoroughly excessive level.
Currently I mostly solo run as a paladin, purely because finding a party these days is very, very difficult (timezone, alignment issues, and others too probably). I have, as a result, found a staggering amount of wealth. What do I do with it? I use it to help others. I don't need it. I can't spend it on anything. There's nothing I want to buy. There is one item in game I'd like to purchase but I'm happy to wait for it. Vestments of Faith don't drop that often.
I mostly spend my gold bankrolling other players lowbie characters - buying them gear and helping them out, as much as I can, to get them started, buying items from traders and merchants and then giving them to those that need it in the outskirts. It fits the character, it helps those players who are struggling, and its rewarding. It also prevents inflation on prices in a way. While I could go around throwing tens of thousands on items, I think that's really quite silly.
Inflation, such as it is, exists because there is a dearth of things for the exceedingly wealthy to spend their coin on. This isn't necessarily a bad thing. The server is aimed at lower level characters, and correctly so, because the levelling process is so slow and because aiming a server at the top end characters is never a good idea unless you prefer to create an image of Ivory Tower syndrome.
Is the economy perfect? No, but none are. With the problems of the setting actively promoting a state of decay and stagnation, and the nature of it being a game, there are inherent problems that make solutions difficult to overcome. Those two aspects of the game are not going to change. But if there are any changes to come in, they'll need to be changes that level only the top end of the playing field, and don't cripple the 'have nots' who are, for the most part, having a tough time of it as it is. Personally, I'd rather keep things as they are currently. I doubt a change made is going to benefit matters as a whole, but rather make things better for a specific group and worse for the many. It tends to be the case from long experience, anyway.