Salma Ahmed
English Lit. GCSE Student
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Inflation is viewed as being undesirable because of some serious economic and social effects. Inflation impacts on income distribution making an random redistribution of real income.
- Words:
- 1820
- Submitted:
- Fri Oct 24 2003
Have a little read: ... ╨╧рб▒с > ■ + - ■ * ье┴ 5@ Ё┐ 0 ▀ bjbj╧2╧2 (" нX нX 1 н И Ъ Ъ Ъ Ъ Ъ Ъ Ъ ╨ ╨ ╨ ╨ 8 ╨ ё v 4 4 4 4 4 4 4 4 p r r r r r r $ g R ╣ B Ц Ъ 4 4 4 4 4 Ц Ъ Ъ 4 4 л > > > 4 Ъ 4 Ъ 4 p > 4 p > > P Ъ Ъ P 4 ( p╛№╗Н╟ ╨ 4 P p ┴ 0 ё P √ 4 √ P о ┬ Ъ Ъ Ъ Ъ √ Ъ P 4 4 > 4 4 4 4 4 Ц Ц > Inflation is viewed as being undesirable because of some serious economic and social effects. Inflation impacts on income distribution making an random redistribution of real income. Those receiving fixed money incomes (e.g., pensioners, beneficiaries etc.) are usually disadvantaged because often their incomes are not adjusted upwards fast enough to compensate for the effects of continually rising prices. Their real incomes (i.e., the goods and services their incomes will buy) will fall. Individuals whose incomes rise more rapidly than the inflation rate will experience increasing real incomes. Generally, the pattern of income distribution tends to become more unequal than it was before inflation. If the rate of inflation is high, individuals with money tend to buy real assets such as property, gold and antiques, which often increase in value faster than the rate of inflation. This group will gain by increasing the size of their share of the nation's wealth. Inflation
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