- To run a wealthy country, a lot of money is needed (national debt is a result of that). People are willing to pay only so much taxes.
Without inflation (hidden taxes) it wouldn't be possible without turmoil.
Inflation causes economic problems. It is a poor method of taxation. Anyway, if a government must go continually go deeper into debt then it is spending too much.
- Inflation is good for the economy, because it promotes spending.
Increased spending is not the ultimate goal. You could easily increase spending by giving each person $1 trillion, but in the end that will accomplish nothing except for creating massive inflation
- Policy to keep the prices stable is needed because that's a good characteristic of money. A gold standard couldn't do this, because of the fixed supply.
You can't keep prices stable and have inflation. That's a contradiction.