Costs and effects of inflation

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  • Created by: Lottie
  • Created on: 19-05-12 16:21
  • loose price competiveness in international markets
  • leads to a fall in world exports & rise in import penetration
  • wage-price spiral; prices rises can lead to higher wage demands as workers try to maintain their real standard of living- to maintain profit margins increase prices= could get out of control
  • reduction in real value of savings


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