Marginal amounts of inflation are required for fiat currency to remain liquid. If currency were deflationary, people would be encouraged to hoard it. A deflatio

Marginal amounts of inflation are required for fiat currency to remain liquid. If currency were deflationary, people would be encouraged to hoard it. A deflationary spiral[1] is one example of what can happen in a deflationary market. Inflation is a feature; not a flaw. [1]: https://www.investopedia.com/terms/d/deflationary-spiral.asp https://www.investopedia.com/terms/d/deflationary-spiral.asp