Asked in InflationEconomics
Discuss how a rapid rate of inflation might affect different groups within an economy?
May 20, 2012 5:56AM
Rapid inflation will harm all groups through reducing real values, creating uncertainty,
instability and harming the efficient operation of the market system. The level of
inflation will influence the severity of any effects. Those who benefit include the
government, borrowers, importers and some producers. Those who suffer include
fixed income earners, lenders, exporters and some producers.