if a high velocity of money is good for the economy why do we want to avoid hyperinflation?

Question

if a high velocity of money is good for the economy why do we want to avoid hyperinflation?

In: 1

Answer 1

From the perspective of retired people, savings become worthless and they won’t be in a position to enter the labour market.

Income equality could widen. Discretionary spending could slow down. Stores could run out of basic things, because people would result in hoarding.

Currencies become worthless.

If money in circulation is being spent to boost the productive capacity of the economy, its great.