Most people don't understand the link between monetary inflation and the eventual decline in their standard of living.
The top people at a central bank will
necessarily be bad economists because a good economist would never want
the job or would never be considered eligible for the job. For example,
Ben Bernanke would not currently be the head of the Fed if not for his
strong belief that creating money out of nothing can benefit the
Almost all politicians are clueless about economics.
The ability to create money out of
nothing provides politicians with far greater scope to buy votes than
would exist if their promises had to be funded by direct taxation.
Monetary inflation often creates the
false impression of a more vibrant economy in the short-term, thus
helping to boost the re-election chances of the incumbents.
The people who benefit the most from
monetary inflation often exert a disproportionately large amount of
influence over the central bank and the government.
Due to the promises made by
politicians in the past, a lot of voters now have a vested interest in
continuing the inflation because it is only via the wealth transfer
brought about by monetary inflation that these people will ever receive
their so-called entitlements.