I don’t think the typical person arguing for inflation would agree that “Destroying the value of savings over time is not the goal”- this is the reason that I have most commonly heard cited for inflation, since it ensures that people spend their money and engage in trade.
Having done some more reading, I agree that overcoming the cognitive bias where people don’t want prices to change is an important use of inflation, and I agree that my proposal does not succeed in addressing this, since the entire point there is that by changing the value of a currency, you can get people to accept lower de facto wages without lowering their nominal (perceived) wage. I will point out that this currently only works in one direction, and does not help people to accept paying higher prices for goods (aside from more quickly forcing sellers to the point where they have to raise prices, at which point they may just as well set a reasonable de facto price that consumers would not otherwise have accepted). I also note that this usage feels somewhat dishonest to me, since it inherently works by creating a mismatch between people’s intuitive maps of the world and the actual reality of the situation.
I don’t think the typical person arguing for inflation would agree that “Destroying the value of savings over time is not the goal”- this is the reason that I have most commonly heard cited for inflation, since it ensures that people spend their money and engage in trade.
Having done some more reading, I agree that overcoming the cognitive bias where people don’t want prices to change is an important use of inflation, and I agree that my proposal does not succeed in addressing this, since the entire point there is that by changing the value of a currency, you can get people to accept lower de facto wages without lowering their nominal (perceived) wage. I will point out that this currently only works in one direction, and does not help people to accept paying higher prices for goods (aside from more quickly forcing sellers to the point where they have to raise prices, at which point they may just as well set a reasonable de facto price that consumers would not otherwise have accepted). I also note that this usage feels somewhat dishonest to me, since it inherently works by creating a mismatch between people’s intuitive maps of the world and the actual reality of the situation.