eli5: If a 2% inflation is considered good and healthy, will this not at some point cause abnormally high money values or a currency crash?

Question

eli5: If a 2% inflation is considered good and healthy, will this not at some point cause abnormally high money values or a currency crash?

In: 0

Answer 1

Sure it does, think about this. How much did a piece of bubble gum cost a hundred years ago, a penny? Now it’s a quarter? That’s a 25 times increase in price over 100 years.

The value of currency absolutely keeps changing, it’s just at a slow enough pace that people don’t notice it too much.