> The money they have now could potentially buy more in the future, but at some point you have to actually buy the thing you need or want.
That's the key. With a deflationary currency you want to keep the money, but need to buy goods. With an inflationary currency you want to buy the goods, so you only keep as much money as you need. This means that an inflationary market has shorter dependency chains, less disruptions (because value is more easily predictable) and generally runs more efficiently. Deflationary value incentivizes consuming less; inflationary value incentivizes consuming more. This is why economies grow and produce more value.
Of course this can be overdone by having an inflation that's so fast that deep production chains become impossible to manage, so you generally want inflation that's low enough that investment-based value gain is not affected, but high enough that money is not a viable investment vehicle.
Remember that money is what you have instead of something useful.
edit: For instance, if you have hyperinflation, you cannot buy a fabrication machine for your factory, because the monetary value of the machine grows faster than your ability to save money. The best use of money is always consumptively spending it immediately. This is also inefficient. So you want to balance between those two problems.
That's the key. With a deflationary currency you want to keep the money, but need to buy goods. With an inflationary currency you want to buy the goods, so you only keep as much money as you need. This means that an inflationary market has shorter dependency chains, less disruptions (because value is more easily predictable) and generally runs more efficiently. Deflationary value incentivizes consuming less; inflationary value incentivizes consuming more. This is why economies grow and produce more value.
Of course this can be overdone by having an inflation that's so fast that deep production chains become impossible to manage, so you generally want inflation that's low enough that investment-based value gain is not affected, but high enough that money is not a viable investment vehicle.
Remember that money is what you have instead of something useful.
edit: For instance, if you have hyperinflation, you cannot buy a fabrication machine for your factory, because the monetary value of the machine grows faster than your ability to save money. The best use of money is always consumptively spending it immediately. This is also inefficient. So you want to balance between those two problems.