If you don't inflate the currency to a certain level when productivity increases due to technology or population growth (such as right now), it may result in a deflationary spiral.
As Aaron said, it is a personal opinion of how much inflation you prefer.
Do you prefer a relatively high inflation because you want to be employed? Or do you want a relatively low one so your assets appreciate or keep their value?
Comments
If you don't inflate the currency to a certain level when productivity increases due to technology or population growth (such as right now), it may result in a deflationary spiral.
As Aaron said, it is a personal opinion of how much inflation you prefer.
Do you prefer a relatively high inflation because you want to be employed? Or do you want a relatively low one so your assets appreciate or keep their value?