I’ve read that many banks want a certain level of inflation and I don’t really see why. Why is important to banks that a stable product costs more tomorrow than today?
Is it to make people spend their money more since storing it will eventually make is worth less?
In: Economics
In my college macroeconomics course the basic explanation was that there is a constant short run tradeoff between unemployment and inflation (called the [Phillips Curve](https://www.investopedia.com/terms/p/phillipscurve.asp)) and that at most times the proper balance between the two involved some inflation to increase employment.
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