answersLogoWhite

0


Best Answer

according to my thinkings, Inflation can lead to high unemployment rate, low GDP, less exports, fall in exchange rate and also loss of international competitiveness............BY:: Hamunyela Oiva, UNAM student,windhoek...

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are disadvantages of Inflation?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Economics

Disadvantages of economic growth?

there are much disadvantages of economic growth and we can't cover here so,inflation,intergovernmental destruction, traffic congestion and population increase.


What are the disadvantages of Inflation?

Inflation is the decreased value of money. if inflation goes up it means that the prices of goods also go up. this may lead to workers demanding higher wages and result in less profit for the business. also means people will not have the the same amount of money to spend and this could lead to a decrease in sales.(less profit)


What are the disadvantages of monetary policy?

Some of the disadvantages of monetary policy include conflicts that may arise when wwwtrying to make amends to an already existing problem. Often, fixing one problem gives rise to new problems such as inflation or poor saving.


Will inflation Peter out?

inflation peter out is when inflation diminish or stops .


Could you tell me some points on Inflation rate its advantage and disadvantage?

Inflation rate of a country is the rate at which the price of essential commodities in a country is increasing. There is no specific advantage of Inflation, but all country's need to have inflation. If prices of commodities do not go up, then the country's economy is said to be in a stand still. An inflation rate of around 5% is considered a healthy inflation rate and it represents an economy that is growing at a steady pace Disadvantages: When the inflation of a country goes beyond control say for example 10% or more then it has a lot of ill effects on the country & its citizens 1. The spending power of the common man comes down 2. Essential commodities prices shoot up and people cannot afford things like food, clothing & shelter etc...

Related questions

What are the disadvantages of wholesaler and retailer betweenconsumer and producer?

Prices are easily subject to inflation.


Disadvantages of price mechanism theory?

Opponents argue that one of the primary disadvantages of the price mechanism theory is income inequality. Other disadvantages include unemployment and inflation.


Disadvantages of economic growth?

there are much disadvantages of economic growth and we can't cover here so,inflation,intergovernmental destruction, traffic congestion and population increase.


Disadvantages of time value of money?

The disadvantages of time value of money are not knowing the interest rates or growth projections of money. It is impossible to forecast accurately inflation rates.


Disadvantages of price mechanism?

Price mechanism is the system where supply and demand are what determines prices of products or services. Unemployment, inflation, and uneven distribution of resources are disadvantages of price mechanism.


What are some main disadvantages to nitrogen?

There are some disadvantages to nitrogen, especially in inflation. Two disadvantages include the expense of nitrogen, and the fact that more tire maintenance will be needed if nitrogen is used.


What are the benefits and disadvantages of inflation and deflation in an economy - Address as two separate categories inflation and deflation and then both categories into Benefits and disadvantages?

Don't have much time but some basics include: Dis: Menu costs, Loss of international competitiveness, Fall in exchage rate, Higher BOP deficit (current +capital a/c) -(hot money/ Imports in relation to exports)


What are the disadvantages of Inflation?

Inflation is the decreased value of money. if inflation goes up it means that the prices of goods also go up. this may lead to workers demanding higher wages and result in less profit for the business. also means people will not have the the same amount of money to spend and this could lead to a decrease in sales.(less profit)


What are the disadvantages of monetary policy?

Some of the disadvantages of monetary policy include conflicts that may arise when wwwtrying to make amends to an already existing problem. Often, fixing one problem gives rise to new problems such as inflation or poor saving.


What are the disadvantages of bonds?

To have a bond is to loan money to the issuing corporation. Some risk may occur in having bonds. These are the Inflation risk, liquidity risk and the lower returns.


What are the Advantages and disadvantages of public debt?

The biggest disadvantage of public debt is the fear of it leading to excessive inflation. The advantage of public debt is the leveraging of public assets to provide services.


Financial speculation its advantages and disadvantages?

Some advantages of financial speculation include the likelihood of making a return and the ability to maintain the value of an asset even through inflation. Some disadvantages include the possibility of loss in value and risk exposure to natural and manmade forces.