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- Is zero inflation desirable? 6 answers
I have been reading a BBC news article about inflation in the UK, which is saying that inflation has recently become negative (http://www.bbc.co.uk/news/business-33147660). The article suggests that this is a bad thing. However, I would have thought that positive inflation is generally a bad thing, because it creates instability, resulting in people spending all their money rather than saving it. Certainly, I know that hyperinflation can cause a huge deal of trouble. Can somebody explain why positive inflation (in modest quantities) is necessarily a good thing?