Five reasons for creating inflation: 1. Inflation makes the national debt more manageable because it can be repaid in cheaper dollars 2. The government can purse monetary policies hospitable to debtors even as it accommodates the special interests that lend to them. 3. Inflation finances social programs 4. Inflationary spending is confused with economic growth: GDP used as evidence that inflation is contained. 5.Inflation causes nominal asset prices to rise, such as stocks and real estate, instilling in the minds the illusion of wealth creation.[Learn More ...]

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