Share your insights or perspective on the financial matter presented in the input.

Is inflation a good or bad thing? Why do governments want some inflation?
Inflation is what happens, it is not good or bad in and of itself.  But consider the following. In a thriving economy with low unemployment, people are buying, buying, buying.  People are not saving for later, they are buying now.  Industry is also making purchases.  Now.  From economics 101: high demand for goods/services leads to relative scarcity leading to higher prices.  Inflation tends to be one byproduct of a thriving economy.  Governments want the thriving economy that brings inflation with it.