First of all, the erosion of business profits and invested capital is not caused by inflation but by the stable measuring unit assumption during low inflation. Yes, reducing inflation reduces the actual cost of inflation (the net monetary loss) and it also reduces the cost of the stable measuring unit assumption during inflation. However, sustained zero annual inflation - required to eliminate the cost of the stable measuring unit assumption completely in this manner - has never been achieved in the past in any economy using money and is not likely to be achieved any time soon in the future. So, central bankers will, most probably, never eliminate the cost of the stable measuring unit assumption completely in the world’s constant item economy, namely, the hundreds of billions of US Dollars being eroded unnecessarily by the stable measuring unit assumption during inflation.
On the other hand, continuous financial capital maintenance in units of constant purchasing power during low inflation and deflation (CIPPA) will automatically eliminate the entire cost of the stable measuring unit assumption forever at any level of inflation in all entities that at least break even and would prevent economic instability during deflation caused by the appreciation in the real value of constant items under HCA. Accountants would then knowingly maintain hundreds of billions of US Dollars per annum in the world’s real economy for an unlimited period of time during indefinite low inflation – all else being equal – in all entities that at least break even.
Not only one, but, two enemies in the economy