At the same time, this exercise in credit allocation (the housing market is getting some help here, too) is depriving small and medium-size businesses of a reliable flow of credit, which, in turn, is having increasingly destructive results on growth, innovation and job creation.
Inflation is a destructive distorter. it fuels speculation and hoarding, as well as misdirects investment into normally uneconomic activities or stops the flow of productive investment altogether as people and businesses clutch their cash.