Inflation is the erosion of value over time. In it’s natural state it penalises idolness or non-improvement. For now let’s avoid the vulgarity of money, but consider other types of real-life inflation that we may see in our lives: If I don’t work out every day I get fatter and so I need to train to maintain my fitness. If I don’t repair faults around my home and garden, the house will loose value. If I don’t keep upgrading my computing power I become diminished in my abilities both relatively and absolutely. Inflation pervades everything. But I argue it is critical for the sake of humankind.
Without inflation things would get better on their own. I would be sitting here, typing on my computer that was gaining in power, inside a house that need never needed to be cared for in order to gain get better, and all the while I would be getting fit enough to reach the Olympics. This is not the design of nature or a world where we strove for improvement – and quickly.
High inflation demands higher efforts to maintain some sort of value. Higher inflation leads to the creation and design of tools and methods of better production. It is this type of very high inflation, an environment where the best can loose their position very quickly that we are now experiencing. It is this environment that demands and nurtures the fastest rate of development.
It has been pointed out to me (Thank Y) that this may all be described by the Second Law of Thermodynamics where disorder can only increase. But just like this, without persistent disorder we would not have a lot to do or reason to be here to do.