If the ideal inflation rate is around 2%, won’t money eventually become worthless?

Question

If the ideal inflation rate is around 2%, won’t money eventually become worthless?

In: Economics

Answer 1

If you have a box of cash (or coin) and you lock it up in a safe, then with 2% inflation that box of cash will indeed lose half its value every 35 years.

I don’t know anybody that does that. Most people spend most of their money to live and pay their bills and invest the rest. People do consider “beating inflation” when they make investment decisions. Money itself is for transferring goods and services, it is not meant to be hoarded.