2.1.2 Consequences of Inflation (Edexcel A-Level Economics Teaching PowerPoint)

This teaching PowerPoint covers the Consequences of Inflation

There are several potential consequences of high inflation. One is that it can erode the value of savings, as the purchasing power of money is reduced. It can also make it difficult for businesses to plan ahead and can lead to greater uncertainty in the economy. In addition, high inflation can lead to wage-price spirals, where workers demand higher wages to keep up with rising prices, which in turn leads to even higher prices. In the long term, high inflation can also lead to a loss of faith in a country's currency and can make it more difficult for that country to borrow money on international markets.