Publication year: 2020
: Bus00029
Inflation is bad news. Besides distorting prices, it erodes savings, discourages investment, stimulates capital flight (into foreign assets, precious metals, or unproductive real estate), inhibits growth, makes economic planning a nightmare, and, in its extreme form, evokes social and political unrest. Governments consequently regard inflation as a plague and try to squelch it by adopting conservative and sustainable fiscal and monetary policies.