I believe that there is going to be inflation. To me this means that I cam going to be able to buy fewer goods. In response to this threat, I will go to my employer and demand higher wages. My demand of higher wages will in turn force employers to raise prices. In this way, because I feared inflation, I created it.
Inflation is a relatively misunderstood concept.
By itself, it really isn't as harmful as many believe. Simply put, what it does is degrade people's savings and hurts people on fixed income. But what inflation does do, especially when it is unexpected, is to hurt productivity. When firms cannot make correct and accurate decisions because they are hampered by or unwary of inflation, they tend to delay investment and growth in productivity will generally slow. Currently, inflationary expectations have many important impacts dealing with the financial markets, which can cause inflation.