Why is inflation desired and important?

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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

21 Answers

Anonymous 0 Comments

Government also wants inflation to tax the future while simultaneously devaluing their debt. But too much and people lose trust for the economy.

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