All that happens when inflation hits is, people know the demand of non-monetary goods and services will go up, sellers will know this and raise prices accordingly, and the market will equalize to the same exact velocity of money, just with an added get-rekt to people incapable of buying in or people trying to live off of their investments into actual things with real returns. Inflation does nothing but hurt people, deflation does nothing but hurt people, and 0% is the true goal.
Inflation is just a tax with absolutely no benefit to society as a whole. People just switch from sitting on cash to sitting on assets instead (or, more accurately, they sit on assets until a higher price point comes along to make up for inflation), and transaction volumes don't change.
“LoAnS gEt ChEaPer” – hah like every bank doesn't have the absolute perfect price point adjustment for every percentage of inflation to milk 100% of the benefit from the loan recipient. Inflation is priced into your loans.
“VeLoCiTy Of MoNeY” – Ah, yes, because rich people sitting on appreciating assets totally makes money move more than rich people sitting on money. They're going to sit on whatever's accruing value either way and price higher if they decide to sell to, again, price in inflation.
“LaTeR ReTuRnS” – if it's going to give you more money later, more money later is more money later regardless of whether the money's worth 100% of today's value or 95% of today's value.
“PeOpLe WiLl SpEnD MoRe” – know what actually makes people spend more? Knowing that they don't need to hide all of their money in fixed assets because of inflation and sit on it. It's the exact same as people sitting on money in a deflationary scenario. If there's no pressure to sit on assets or money, then there's no pressures preventing investment or spending. Inflation harms investment, simple as.
I've heard this misinformation a lot, especially today, and just wanted to get that out there. No one has ever given me a single source or citation or study that has shown, in real world effects, that inflation incentivizes investment. It's just fake tribal knowledge with no basis in reality used to siphon money from those who have it to those who print it.