This is easy. If inflation is 8% and your risk free investments (government issued debt like T-Bonds, T-Bills are returning 4%), then it makes sense to spend the money you have. Here’s why, you are losing 4% every year by holding cash because 8-4=4. If you wait to spend that money for a year and invest in T-Bonds, you will have less money a year later when you cash out the T-Bond. High inflation discourages saving money and encourages people to spend all their money right now because if it losing value every single day. It encourages costly practices for businesses and consumers like hoarding supplies because it is cheaper to buy it today than it is tomorrow. This creates huge inefficiencies in the market and encourages a inflationary wage spiral as workers demand more raises to keep up with inflation, which is stripping away wages and savings.