Inflation may have a really bad effect on the economy. We all know that inflation is a bad indicator. Having said that, when it comes to inflation, how does it actually affect the money? How does the value of money depreciates?
What are the effects of inflation on money?
- Thread starter Good-Person
- Start date
When there is an inflation, the value of money will decrease. When the value of money decreases, the price of a commodity will be higher. For instance, if you were able to buy a kilo of rice for $1 before the inflation, your $1 will not be able to buy one kilo of rice after inflation.
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