In my previous discussion about the effects of inflation, I missed an important point. This might be the most pernicious of its cultural effects: inflation discourages productivity and encourages speculation.
The distortions generated by inflation are not immediately apparent. While an inflationary episode is underway, labor is tricked into accepting the same nominal wage (that is, accepting a lower real wage), since price levels have not risen yet. Soon, prices rise and the decline in purchasing power becomes apparent. Long after the prices have risen are the labor able to negotiate a (nominal) wage increase. This increase is also likely to be lower than the rate of inflation, thus the real wage continues to be lower than what it was prior to the inflationary episode. A decline in real wages discourages productivity.
Businesses too, while the inflation is underway, make decisions based on distorted signals. They make malinvestments as a result, exaggerating the business cycle. During downturns, businesses are forced to lay-off employees and even close down. Again, this discourages productivity.
Meanwhile, artificially depressed interest rates and easy money prop up bad businesses and promote get-rich-quick schemes. Realizing that their purchasing power is falling in real terms, people turn their attention towards the prospect of increasing their wealth through speculation rather than enhancing their productivity. A high-time preference culture thus develops.