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Well currently there is deflation, and a some amount of inflation is good because it increases solvency. Certainly we don't want to much inflation, but we also don't really want deflation, especially now. Inflation is not always a bad word.
Here is an interesting article on the subject:
http://www.marketwatch.com/news/story/0-isnt-low-enough-should/story.aspx?guid={0C5136DB-B11E-4531-A996-A070E6D8B5CD}
And here is a quote from the wikipedia page on inflation:
Today, most economists favor a low steady rate of inflation.[8] Low (as opposed to zero or negative) inflation may reduce the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reducing the risk that a liquidity trap prevents monetary policy from stabilizing the economy. The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control the size of the money supply through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.
Here is an interesting article on the subject:
http://www.marketwatch.com/news/story/0-isnt-low-enough-should/story.aspx?guid={0C5136DB-B11E-4531-A996-A070E6D8B5CD}
And here is a quote from the wikipedia page on inflation:
Today, most economists favor a low steady rate of inflation.[8] Low (as opposed to zero or negative) inflation may reduce the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reducing the risk that a liquidity trap prevents monetary policy from stabilizing the economy. The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control the size of the money supply through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.
source(s):
http://en.wikipedia.org/wiki/Inflation
http://www.marketwatch.com/news/story/0-isnt-low-enough-should/story.aspx?g...{0C5136DB-B11E-4531-A996-A070E6D8B5CD}
http://en.wikipedia.org/wiki/Inflation
http://www.marketwatch.com/news/story/0-isnt-low-enough-should/story.aspx?g...{0C5136DB-B11E-4531-A996-A070E6D8B5CD}
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