Is inflation a good or bad thing? Why do governments want some inflation?
In general the consensus is that a small amount of inflation (usually 1.5-2% per year) is desirable.  That is why the Federal Reserve sets its inflation target in that range.  The reasons why are quite complex though. One reason is "wage stickiness" - ie., the observed phenomenon that employers don't like to cut wages.  Having a small rate of inflation means that when wages are steady in nominal terms, they are actually falling in real terms.  This gives employers more flexibility.
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### Instruction:
Is inflation a good or bad thing? Why do governments want some inflation?

### Response:
In general the consensus is that a small amount of inflation (usually 1.5-2% per year) is desirable.  That is why the Federal Reserve sets its inflation target in that range.  The reasons why are quite complex though. One reason is "wage stickiness" - ie., the observed phenomenon that employers don't like to cut wages.  Having a small rate of inflation means that when wages are steady in nominal terms, they are actually falling in real terms.  This gives employers more flexibility.