Can Inflation be helpful?

We’ve talked quite a lot about inflation here about how it decreases the value of our money and how the stuff around us to consume suddenly becomes expensive day by day, but, if inflation is that bad why don’t governments try to focus on keeping the inflation to a net-zero?

The governments don’t do that because it can cause stagnation in the economy, if the prices are the same every year and the consumer buying also stays the same all year would mean there would be no surplus money flow in the country’s financial structure to boost the economy, which further means that development of the country would come to a halt as well.

If inflation no longer exists in a country’s system then that would also mean your salary would remain constant because your company as well isn’t having any development in their growth because of stagnant supply and demand. We could even see job losses if the employer thinks there is no need for such a big workforce to serve a definite number of people.

The money you have kept in your bank’s savings account is yielding you an interest per annum which is just enough to beat inflation, which means you wouldn’t have your wealth growing in your bank account if inflation doesn’t exist.

All things considered, we can say inflation is good for our economy but inflation at a high or an uncontrollable rate would mean the doom of the country, this is commonly called hyperinflation, the real-life example of hyperinflation in Venezuela, the country with the largest oil reserves and deposits has succumbed to inflation and made its country’s currency worthless, the main reason behind this was corrupt government and uncontrolled government spending.