Too much state looting (and printing money is a way to loot) discourages production and investment besides causing political trouble. So there's a limit to how much any state can devalue.
To illustrate, your employer could make itself more competitive by cutting wages. But if it cuts wages too much you would stop working for it and find other employment. So there's a limit to how competitive you employer can be by cutting wages. The better, easier way to competitiveness is to increase productivity by enticing more productive workers with higher compensation.
By devaluing money, a government effectively cuts wages for the entire population, thus making the country as a whole more "competitive," i.e., foreigners can afford to buy more of the country's goods and services. But, just like cutting wages in a single firm is not generally effective, so inflation is not the best way to become nationally competitive.
The better, easier way to competitiveness is to increase productivity by enticing more productive workers with higher compensation.
It's a great time for startups because it looks like investors are encouraging another Internet "bubble" -- the US economy boomed in the last one, and it was a significant contributor to the record economic surpluses we had under Clinton (http://pragcap.com/visualizing-the-destruction-of-the-clinto...).
To illustrate, your employer could make itself more competitive by cutting wages. But if it cuts wages too much you would stop working for it and find other employment. So there's a limit to how competitive you employer can be by cutting wages. The better, easier way to competitiveness is to increase productivity by enticing more productive workers with higher compensation.
By devaluing money, a government effectively cuts wages for the entire population, thus making the country as a whole more "competitive," i.e., foreigners can afford to buy more of the country's goods and services. But, just like cutting wages in a single firm is not generally effective, so inflation is not the best way to become nationally competitive.