Advantages and Disadvantages of Inflation?


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.
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
Mutual funds. are currently the most popular investment vehicle and provide several advantages to investors, including the following: However, there are also disadvantages of mutual
Advantage: Inexpensive. Traveling by train can be one of the more cost-efficient means of transportation. Cars are expensive to buy and maintain, not to mention the high cost of gas
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
1 Additional Answer Answer for: advantages and disadvantages of inflation
The Advantages & Disadvantages of Inflation
According to, "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 »
Difficulty: Easy
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