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
Because you need to have always, constant, endless growth. I mean growth is a fundamental requirement for the current financial system, if you don’t grow it, it collapses.
Inflating things makes them grow, hence inflation is a good way to grow.
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