Philip T. answered • 04/24/19
Micro and Macro Economics made simple! Experienced Ivy League Tutor
Too much inflation will make money become worthless. One of the key functions of money is that it is a store of value. If someone gives you $10 today, you accept it because you hope to be able to exchange it for $10 worth of goods tomorrow as the prices of goods are not changing.
With high (hyper) inflation, if someone gives you $10 today, if you do not spend it immediately, you will only be able to buy something for significantly less than $10 tomorrow because the sudden price increases mean your money is now worth less.
Once money becomes worthless, consumers will either revert back to a bartering system, or people might adopt precious metals as a 'curency' that have a widely understood intrinsic value (gold or silver, for example)
