I don't really see how moving coins to yourself is good for the economy. In fact it seems like a waste of resources, though the benefit of certainly over lost coins might be worth it.
It's not. But keeping coins moving is. Any waste of resources in this instance is negligible. But I am more likely to spend coins if I am consciously aware of them as a resource, as would be required in order to move them. The good for the economy part is emission which compensates for lost coins. They will have higher velocity than average.
Inflation is not an incentive to spend unless you are forced into using only that currency, like governments do to their own people.
Do you have plans on forcing everyone to use Monero? Because if you don't, this will fail. I love everything about this coin, except for the inflation. And I talked to many bitcoiners and they independently arrived to the same opinion.
One of the main uses for Bitcoin that a lot of people like, is as a store of value. It rewards saving, like gold, as opposed to what fiat does, which punishes saving and responsible spending.
This also has ethical implications, like supporting or not consumerism and its ecological impact. Why do you want to force people into buying things they don't need? The economy can't grow undefinitely, sometimes it has to shrink for the benefit of the world and all of us. If someone is selling a product that people don't need anymore, what's wrong with him moving into something else? Why not "force" him into building things we need (if anything at all), instead of forcing us into buying them anyway? Inflation goes against the free market in that sense.
Also, if you want the price to go up, there's nothing better than having people use it as a store of value. Being able to use the currency (utility) also drives the price up, though not immediately (but the good news can have a fast effect). Forcing people into spending it won't. And it will certainly not attract new savers.
I come at this not from a macroeconomic point of view (I consider virtually all macroeconomics to be junk science) but from a practical one. I want to continue to pay miners without relying on transaction fees, because the latter forces consolidation, and worse, to give miners the market power to charge more than marginal cost.
If you don't have inflation (or demurrage, which I consider equivalent) how are you going to pay miners?