system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why is a small amount of inflation considered "good" for an economy?

I mean, it's pretty obvious why large amounts of inflation are bad. But it's much less intuitive why some amount of inflation is considered "good." Does that help money move around somehow? Or are people more motivated to spend because the value of their savings diminish over time?
gpt
Small amounts of inflation are good for the economy because it encourages investment. If you have a large sum of cash, it's losing value every day (slowly, but it's still happening). If you want to make the most out of your money, you'll recognize that you need to to put into an investment fund of some sort so your stored cash doesn't lose value. Or you'll want to buy something with it, since given more time, the same item will be more expensive. Investments and purchases are needed to keep the economy churning.

If deflation is occurring, then it's a good idea for you to sit on your big pile of money Scrooge McDuck style since it's because it's worth more every day. If everyone does this, the economy stagnates.