Inflation vs Hyper Inflation

  Money needs to be printed out of thin air always. Whether its to absorb new labor units or employ new production methods. The supply of money must always arbitrarily expand. Whether the expansion is a result of the state issuing new money or private lenders expanding money through fractional reserve lending policies, there needs to be new money entering the market.

  As a result, inflation is just a way of life. Grand parents and great grand parents are often good sources of what wages and consumer prices used to be. Wages decades ago would seem third world today, and so were consumer prices. Inflation thus helped boost incomes and consumer prices alike.

  Its best to adopt a monetary policy that helps maximizes output by fully utilizing a nation's production capacity. That means putting available units of labor to work as well as idle factories and businesses. And we continue issuing new money until we reach what ever we consider to be ideal utilization.

  If we continued to issue money after full utilization. Then the inflation we face would probably become troublesome. Its like pouring water into a glass that is already filled. There is no one left to hire. There are no idle factories that need to be put to use, no businesses and idle land. The new money would simply get absorbed into production capacity that is already being utilized. Thus driving incomes and consumer prices beyond what we are normally used to.