Question

How inflation affects both the country and you personally?

Answer 1

Inflation in simple terms is the general rise of price level of goods and services in economy over a given period of time

if we talk about personally then money loses its value.

so purchasing power of a person decreases as inflation is there.

In any economy ,effect of inflation on the debtors is positive because they need to pay money with less value .

If we talk about the whole economy, the situation like hyperinflation can be there.

it will lower the cost of borrowing from other country .

It increases the unemployment reduces the growth in the long run .

it weakens the currency as well as compared to other foreign currencies due to less purchasing power