Why does central banks like the FED want inflation by putting interest rates at 0%? Cash is king. Why can't people just hold onto cash and make money on interest or preserve what they have. there is nothing worth investing base on fundamentals and the risk of bonds and stocks now. the economy may be stagnant with high unemployment but prices for commodities, real estate and many things have not gone down and actually still rising. what is happening is stagflation...and is actually bad for job creation as higher prices suck consumer dollars out fo the economy.people have less disposable income to spend..as the consumer spending is 70% of the economy.