The Problem With Too Much or Too Little Inflation

The mint in Zimbabwe even printed $100 trillion banknotes. Increasing inflation from 0 to 2% means you can still save your money, but that you would be better off investing it in the long run. Prices are more or less stable and employers have a little bit of wiggle room to increase wages when firms do not grow. Psychologically and culturally, workers find a pay cut to be unacceptable,. Even if in real terms, it's the same thing.