Investors won't commit their resources for lengthy periods; labour negotiations become more acrimonious; and the overall economy is not as productive as it could be. Indeed, with the erosion of confidence in money comes an erosion of confidence in the fairness of markets.
As former Bank of Canada Governor Gerald Bouey aptly put it in his 1981 Annual Report, "inflation melts the glue that holds free societies together." The lesson we (and other central banks) have learned in the past 30 years is that low and stable inflation is the best contribution that monetary policy can make to a strong economy.