Inflation really actually isnt that big a deal, its only when inflation gets out of control (i.e. in russia at soem points) where money becomes so worthless you would carry your wages in wheelbarrows and only be able to buy a loaf of bread.
Inflation is an incredibly important economic factor, not only for Governments, but for indiividuals. Ever since the rampant inflation of the late 70's during the Labour Govt's last reign, (where inflation was averaging 25% a year at it's peak), Govt.s have aimed to keep inflation down. I wont bore you with the in's and out's etc. but the current Labour Govt has low inflation as one of it's main objectives, (about 3% or less). To this end it set up the independance of the Bank of England in order that interest rates could be set to achieve their targets for inflation and not political targets.
During the 80's Brazil suffered 2000% inflation in one year, crippling the economy as money had no value. The inflation you talk of occured during 1919 in Germany. The Allies had set the Germans to pay massive war reperations. Unfortuantly, instead of doing the sensible thing and setting the amount in USA Dollars, (as the Dollar was a stable currency), they set it in their own currrency, (which I can't spell :embarrased2: ), so the German Govt. deliberately created massive inflation, so that the repayment of war debts became worthless. Unfortuantly, this also meant any savings that German people had became meanigless, and people went back to the archaic barter system for trading goods and services. However, if you'd taken out a massive loan or mortgage, you'd have been able to pay it off at practicaly no real cost or effort. It was said that one guy left a wheel barrow full of money outside his house, and when he came back his barrow was gone, but the money had been left on the side. Prices were literaly going up by the hour, and so money bacame worthless.
Anyway, back to the topic, I reckon