According to free-market economists, inflation is a major barrier to growth and investment. Although it used to be a problem, since the 1990s, it has largely been tamed. Chang points out that since economic policies reduced inflation in the 1990s, the world economy has, if anything, become less stable. Considering examples such as interwar Germany, where skyrocketing prices likely enabled the Nazis to take power, Chang grants that hyperinflation is a problem. However, modest inflation, even up to 20% or higher, is not necessarily a bad thing: South Korea and Brazil both underwent rapid growth despite high inflation.

Chang highlights several harms that may result from anti-inflation policies. Raising interest rates as part of such policies can hurt growth by encouraging investment in financial assets rather than real sectors. Additionally, the frequency of financial crises and job insecurity have increased during periods of low inflation, and some studies suggest a causal link between these policies and outcomes.