To make people feel good. Inflation means raises (even if productivity hasn&#x27;t changed) and higher prices (shop keepers always love when prices go up, manufacturers increase revenue, etc.). Deflation means pay cuts (even if you didn&#x27;t do anything wrong) and lower prices (shop keepers freak out when they keep the prices the same ... but fewer people buy. same with manufacturers). Things just work much better with inflation, rather than deflation.