Purchasing power decrease

Consumer confidence decrease

People spend immidiately on necessities, if they cant, they will "exchange goods", barter

Saving in more stable currency or physical asset.

Unemployment increase

Cost of production increases

Profit decrease

confidence in price level decrease

therefore, investments decrease

interest rate increase, therefore firms borrow less, therefore they dont expand

government invests less

goverment may lose its support due to inactivity, because inefective policies + No social walfare