Benefits and costs of inflation
- Created by: Jade
- Created on: 08-01-13 12:46
Benefits and costs of inflation |
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Advantages
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Disadvantages
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EvaluationDepends upon - rate of inflation, whether it is fluctuating, whether it was correctly anticipated, its rate relative to that of other countries. Type of inflation - cost push is more harmful for an economy - cost push inflation - often accompanied by a fall in real GDP and a rise in unemployment.High rate of inflation more harmful. Unanticipated inflation causes uncertainty and can result in a random redistribution of income. |
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