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.

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[–] 0 points 14 hours ago (1 child)

Marked velocity money needs to flow for value to be created inflation makes existing money worth less by printing money in a sense taking money from a source and making it flow into the goverments pocked 100€(bank acc) 100€(goverment)--inflation-->95€(bank acc) 105€(goverment) The goverment will now spend this money making it flow en thus creating value(idealy)

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