> What's the problem? Money is just debt. Having confidence that you can call the debt at a later date is the only property that is of true concern with currency. As long as you have the confidence, it theoretically doesn't really matter which currency you use as your IOU.
The problem is the wild disparity in purchasing power. Like, with the same amount of money at your disposal, you're able to live like a king in the poorer parts of the country - but literally struggle to survive in the richer parts (i.e. urban/megalopolises). Currencies have two functions - long term value storage (which is what you're referring to with required confidence) and short-term value aka ad-hoc expenses, and that's what the wide masses use currency for mostly as they don't have much to save.
That's something that was seen as a serious problem here in the EU when the Eastern European nations were introduced in the Euro, and the predictions materialized as expected: Eastern European countries suddenly had merchants demanding Central European prices of goods (alone to prevent Central Europeans emptying the shelves and doing arbitrage trading), while pensions and wages didn't keep up with the price increases as the economy's productivity wasn't anywhere near enough. Hell, even the industrial heavyweight that is Germany struggled with that issue (the Euro was called "Teuro", from "teuer"="expensive"), the Eastern Europeans got hit orders of magnitude harder.
> You are right that a primary objective of a central bank is to keep the currency stable so that people remain confident in it, so it may seem like it disproportionately focuses on the value of the currency, but that's kind of its job.
Yeah, the infamous "the economy should be at 2% inflation" target where everyone dances around while conveniently ignoring the effects of that on the wide masses that don't have collective wage agreements.
> Thing is, the national economy doesn't really matter that much to your every day life, does it?
Media and politicians only focus about the national economy though! You won't ever hear a national news anchor talk about some random paper mill or whatever in a flyover state. But people see that the local economy is going to the gutter while politicians and media act like everything is fine. It's literally the "everything is fine" meme [1], and that's why public distrust in politicians, media and democracy itself is at rock bottom at the moment.
> Hence the old adage of the municipal government being the most important. And municipal governments should be looking at things like cost of living indices for their region.
They can't. They lack the legal authority and the tax income to do anything meaningful, and most issues are caused on a national level.
[1] https://knowyourmeme.com/memes/this-is-fine/