Inflation is good. Too much inflation is bad. Not because of inflation per se, but because of what inflation measures.
Inflation comes from a imbalance in supply and demand. If demand in an economy is growing in a healthy way, you'll have some inflation as investments in production will take time to result in increased production.
This increase in prices serve as signaling to determine where to invest in capacity.
Prices is how agents communicate in open markets, a slight inflation is a message that there is unmet demand.
Inflation comes from a imbalance in supply and demand. If demand in an economy is growing in a healthy way, you'll have some inflation as investments in production will take time to result in increased production.
This increase in prices serve as signaling to determine where to invest in capacity.
Prices is how agents communicate in open markets, a slight inflation is a message that there is unmet demand.
But this is all basic economics...