While consumers generally dislike inflation because it erodes the purchasing power of their income, businesses desire a steady level of inflation because investments made in today’s prices yield higher profits and returns in the future. Governments also like low and steady inflation. With inflation, government’s long-term borrowing needs to be repaid at a lower real cost, and a nation’s real income keeps increasing as long as employment remains high and the improvement in worker productivity exceeds their wage enhancements. Prices of assets such as houses and equities keep rising, attracting investors into the economy. The idea is that the economy keeps growing and everyone benefits.