Effects of Inflation

Why does it affect differently?

This is because of the fall in the value of money. When price rises or the value of money falls, some groups of the society gain, some lose and some stand in-between.

Economic Groups: There are two economic groups in every society, the fixed income group and the flexible income group.

Effects on Redistribution

There are two ways to measure the effects of inflation on the redistribution of income and wealth in a society.

Two Ways: On the Basis of the change in the real value; on the basis of the size of distribution of income.

Debtors and Creditors

During periods of ....