Is inflation Good or Bad to the economy?

Hello Guys,

We called increase in "general price level" in an economy from the previous year economy as inflation.
Inflation has a direct impact in our day to day life and it's unavoidable.


What Do you think Is inflation is good or bad?

Quote:

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Originally Posted by Bhavya

Hello Guys,

We called increase in "general price level" in an economy from the previous year economy as inflation.
Inflation has a direct impact in our day to day life and it's unavoidable.


What Do you think Is inflation is good or bad?

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When inflation is too high of course, it is not good for the economy or individuals. Inflation will always reduce the value of money, unless interest rates are higher than inflation. And the higher inflation gets, the less chance there is that savers will see any real return on their money.