73
Why is inflation desirable? (lemmy.world)
submitted 10 hours ago by to c/asklemmy@lemmy.world
72 comments fedilink hide all child comments
 

I've been wondering this question for a while. Ignoring current events, why is a little bit of inflation desirable?

I do understand that it's done to "stimulate" the economy so people don't let their cash rot in a checking account, but isn't it a zero-sum game? Everybody says that money is not meant to stay where it is, rather, should flow through the economy. But if the economy always needs injections of liquidity because otherwise it fails, isn't the economy broken?

I feel like there's something I can't comprehend about that.

you are viewing a single comment's thread
view the rest of the comments
[–] 2 points 3 hours ago

Not sure about the hoarding wealth thing, but

You can't buy a house by stating you own SpaceX, they want cash.

You basically can, since the bank will give you a loan at almost no interest with your shares as collateral.

  • permalink
  • fedilink
  • source
  • parent