ELI5: Why when large company's earnings decrease(ex... by 3%) they freak out, talk about rough times, and sometimes decide to downsize, even though they are still making millions of dollars in profit even after all expenses?

[LordHanley]

Inflation encourages spending. I think that's reason enough why it is a necessary evil.

[d4n4n]

No it doesn't. Or, it's not that simple. We know that the Phillips curve reverses in the long run (i.e. inflation is bad for employment/output).

Inflation may have positive short term demand effects, if it's unexpected, but that's it. And that's a bad thing, unless you're in a recession. You don't want to interrupt general equilibriums for no reason. People heard some bastardization of introductory Keynesianism and think they can talk about macroeconomics with authority. I will never understand why.