Inflation also decreases the impact of long term debt. This has the effect of promoting the use of credit while discouraging stagnant hording of capital. If you stash your money under the mattress, it will depreciate with inflation, but it's the same with a mortgage loan; making the principle easier to pay off over time.
Unfortunately, this is also the foundation of current government spending. They push the fed to create more money, to increase inflation, so the national debt will seem more manageable.