The economy is literally just people passing money around. What causes the value of a currency to decrease?
In: Economics
A certain amount of inflation is vital to most major economies when it comes to investments.
If the money in your bank account would be worth the same amount in 20 years you’d probably just leave it there.
The fact that it looses around 3% of its value every year usually forced propel to invest their money (often in companies on the stock exchange) as they are hoping to get more than a 3% return and therefore ensure that their money doesn’t loose value.
As a result we are essentially helping companies grow, and they don’t have to go to the bank and take on a load of debt to do so.
Also, wages and house prices generally rise with inflation (houses often outpaces it)
If, however, inflation is too high the real losers are people who are retired because their pension pot is static
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