disadvantages of inflation?

inflation

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  • 1 decade ago
    Favorite Answer

    As far as an economy is concerned,the exchange rate of currency gets reduced and it badly affects the imports of materials.Further, inflation results in price hike of even basic food stuffs and ultimately it creates a situation where poor cannot live in.

  • Anonymous
    1 decade ago

    the main problem with inflation is that products on the world market become more expensive for the inflated country to buy.

  • 1 decade ago

    Prices rise - Your money buys less - And to reduce inflation, interest rates are raised

  • 1 decade ago

    Well, your money will buy less of the good or service you need. The higher the rate is the faster your cash becomes worthless

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  • Anonymous
    1 decade ago

    prices get outrageous, dollar value falls, if it keeps getting worse we r gonna need wheel barrows full of money to buy stuff

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