Why is no inflation bad?

Question

Too much inflation is certainly not good, but why is no inflation not good either? Why is a little bit of inflation actually a good thing?

Answer 1

I found this quote on Wikipedia. The first two sentences make a pretty good argument for the benefits of a little bit of inflation.

" With inflation, the price of any given good is likely to increase over time, therefore both consumers and businesses may choose to make purchases sooner rather than later. This effect tends to keep an economy active in the short term by encouraging spending and borrowing, and in the long term by encouraging investments. But inflation can also reduce incentives to save, so the effect on gross capital formation in the long run is ambiguous. "