The Giant Pool Of Money. Implications

I ask this question to all economically savvy EvC members... I understand enough to understand that this is true.But what is a 'good' rate of inflation? And at what point does inflation become a bad thing?Is inflation something whose good/bad effects should be determined in relation to growth/GDP? Or something else?Basically can someone explain the role of inflation, what is good and what is bad, in Capitalist economics to me?

OK. So whether inflation is good or bad is directly related to interest rates? Is that right?Can you explain more fully?I am asking from a position of genuine ignorance here. Not because I have some axe to grind.

Is your base concern that US economic hegemony is at an end and that other nations wil take economic precedence?

Yes I think it does. In the UK at the moment we have low growth, low interest rates and (relatively) high inflation. This seems like a potentially problematic combination.