For weeks I’ve been pondering the notion that “2% inflation is good for the economy.” I strongly feel it is not, but finally decided to run the numbers myself tonight. It’s pretty clear to me that long term inflation is man-made to protect government debt. I’ll share more tmrw.
Discussion
The slow inflation prevents things like the Plzeň uprising in 1953 when the Czech government “reformed” their monetary system, massively reducing the value of the currency overnight, to deal with its debt.
Slow inflation accomplishes the same thing without the riots. I would say it’s theft, but I wonder if that is what we get for using their money.