Investing

Apparently from newly published research by Peter Sanfey and Utku Teksoz, of the European Bank for Reconstruction and Development, based on data from the World Values Survey has identified that there is a positive correlation between inflation and happiness:

"But money and history are not the whole tale. Some people (Czechs, for example) are happier than their national income per head would suggest; others (such as Slovaks) are much gloomier. Such variations are partly explained by three things. One is inequality, which is particularly resented in post-communist countries. Second is the extent of economic reform: those that have moved least, like Belarus, are the most miserable. Third, and rather oddly, higher inflation seems to make people happy--perhaps because the alternative, curbing it, means cuts in social spending."

I already believe there are lots of reasons that western governments will be leaning towards inflation, demographics, debt, history and now politics. Happy voters are more likely to support those that maximize their happiness and in this case those that offer more than they can afford too and make the difference up with inflation.