Advantages and Disadvantages of Inflation?

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There are a variety of advantages and disadvantages of inflation. For the advantages, moderate inflation enables adjustment of prices and wages, and inflation can also boost growth. As far as disadvantages, inflation tends to discourage investment and long term economic growth, and it also reduces the value of savings.
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The Advantages & Disadvantages of Inflation
According to Investopedia.com, "Inflation is defined as a sustained increase in the general level of prices for goods and services." In other words, the value of the dollar does not stay consistent during times of inflation, and the purchasing power of... More »
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Q&A Related to "Advantages and Disadvantages of Inflation?"
Advantage - 1.people feel richer (money illusion) 2.unexpected inflation benefits borrowers. 3.could be from extra growth in the economy or extra money which would lead to lower unemployment
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Inflation is a mechanism for taking buying-power off one section of society and giving it to another. Example. In the 1970s my parents, net savers, lost a lot of the buying power
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according to my thinkings, Inflation can lead to high unemployment rate, low GDP, less exports, fall in exchange rate and also loss of international competitiveness.BY: Hamunyela
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