Why if I have $100 right now, 10 years later that same $100 will have less purchasing power? Why can’t our money retain its value over time, I’ve earned it but why does the value of my time and effort go down over time?
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Modern central banks deliberately aim to maintain some inflation in their monetary policy.
(Moderate) inflation is generally thought to be a net positive because it discourages hoarding money and encourages investment and consumption, which is usually good for economic growth.
Also, even modest levels of deflation can turn into a vicious cycle, so if you don’t want to risk falling into a deflationary spiral, you need to maintain some inflation, because perfect price stability simply isn’t possible.
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