Unlike China, western countries worry a lot about inflations. This is an academic question. Is high inflation a good thing? In the past, it is not in the US. But in Chinese history, high inflations led over-investment, but did not stop growth. China has one of the highest inflations, but China does not raise interest rate fast enough to stop the speculation in stock markets and real estate. Everyone is still happy. Employees see higher wages. Business sees higher profit and higher sales. Is this because most chinese have huge savings and tend to gamble? Or the inflation theory does no longer hold? I remember when I studied Capitalism, I was taugh there is a 4 yr cycle: inflation, overinvestment, deflation. But this cycle never takes place since early 90's. Even the 2000 dot com crash does not slow the economy for long.