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?

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Answer 1

No, very likely not. A 2% steady inflation (for explanatory purposes) is a doubling of price every 35 years. This is easily something that most people can accept and have accepted much higher – a lifetime of purchasing something would see it quadruple in prices at 2% inflation.

Money is a created product. So it isn’t something that will “run out”. What is important is relative predictability and stability.