I mean by the “health level of inflation” the level of inflation which is benefitial to the economy without destoying belief in your currency, or creating an assets bubbles. As I explained in another comment below, printing money destoys contracts as people start to rewrite these contracts in a harder currency, as it happened in Russia during money printing experiments. The contracts were rewritten in dollars, exactly because russian central bank could not print dollars. As a result, the central bank lost the ability to affect inflation in dollars contracts. It had to pay a lot later to return the people beilef in russian ruble, by constntly manipulating currency rate.
I mean by the “health level of inflation” the level of inflation which is benefitial to the economy without destoying belief in your currency, or creating an assets bubbles. As I explained in another comment below, printing money destoys contracts as people start to rewrite these contracts in a harder currency, as it happened in Russia during money printing experiments. The contracts were rewritten in dollars, exactly because russian central bank could not print dollars. As a result, the central bank lost the ability to affect inflation in dollars contracts. It had to pay a lot later to return the people beilef in russian ruble, by constntly manipulating currency rate.