EFFECTS OF INFLATION

There are multi-dimensional effects of inflation on an economy both at the micro and macro levels. It redistributes income, distorts relative prices, destabilises employment, tax, saving and investment policies, and finally it may bring in recession and depression in an economy. A brief and objective overview of the effects of inflation is given below:

1. On Creditors and Debtors 2. On lending 3. On Aggregate Demand 4. On Investment 5. On Income 6. On Saving 7. On Expenditure 8. On Tax 9. On Exchange Rate 10. On Export 11. On Import 12. On Trade Balance 13. On Employment 14. On Wages 15. On the Self-employed 16. On the Economy