Is Inflation always harmful?

manishsinghon

Manish Singh
Hi guys,

Inflation is a measure of economy whether shrinking or growing but mostly inflation results in shrinking of the economy. It results in increase in prices of the day to day commodities. It also increases the interest rates, loans and other means by which the people are borrowing or lending money. Thus, hurting regular people more. It creates confusion, uncertainty leading to less investment and low international competitiveness. It leads to decline in income called as stagnant wage growth. other than that Inflation is not harmful as it acts as a symptom for growing economy.

Inflation allows prices of various commodities to adjust according to the budget of the consumers. It results in people or the seller making good amount of profit which in turn boosts the economy.

Please share your views…
 
I think there should be no problem for economic growth. Small amount of inflation is not bad and essential for the growth of economy. In case of zero inflation funds resting in an account might be more useful but it reduces the investment.
 
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