I haven't studied this at all.
My guess is a very small amount might be okay.
I don't think it will ever be okay. Inflation is a tax on the poor. All the new coins simply end up in the hands of the economic elite within the coin and existing holders are penalized.
There's a lot of inflationary coins out there (PoW and PoS) and most of them fail with time. What's the point of cryptos as a store of wealth when I can open an account at Vanguard Investment and get 1%-2% return above inflation and it is almost guaranteed my money will be there in the next 12 months?
I think it's crazy that people think 1%-5% annual inflation is ok. It's not OK for me to lose 25% of my wealth in 5 years so some crypto-elite can have more money.
TS is correct.
There need be no inflation.
Actually a healthy economy with fixed monetary supply should mean that purchasing power should increase over time for each unit and this
shouldnt have an adverse effect on total economy.
The problem is that people lose passwords, etc, so the amount of NEM will decrease over time. So I think we need a small amount of inflation (e.g., 0.1337% ). If this is distributed randomly, then it won't just go to the rich.