https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8 en-us 2021-05-14 20:17:15 UTC 2026-03-25 15:34:18 UTC hello@padlet.com https://padlet.net/icons/png/1f4b8.png https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536235494 - Its costs include menu costs, the cost of updating menus and prices, and shoe-leather costs, costs and inconvenience incurred in withdrawing cash.
- Distortions in the way taxes are levied 
- The inconvenience of living in a world with a changing price level.]]> 2021-05-18 15:51:02 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536235494 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536238754 Because the government pays back less than the borrowed before]]> 2021-05-18 15:51:40 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536238754 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536239858  • more pernicious than in case of steady & anticipated inflation
 • the distorting effect – information 
• the shoeleather costs 
• menu costs
 • microeconomic inefficiencies in the allocation of resources
 • tax liabilities
 • the inconvenience of living in a world with a changing price level
-it enriches borrowers at the expense of lenders( there will be more borrowers than lenders) 
-increases risk premium required by borrowers and other agents due to inflation uncertainty
-may mislead the economic agents into believing that the increased price means increased demand

**advantage**


]]> 2021-05-18 15:51:53 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536239858 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536242340 an increase in the money supply]]> 2021-05-18 15:52:20 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536242340 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536242723 1 ) fiscal deficits → financed by printing money ]]> 2021-05-18 15:52:24 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536242723 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536245040 In the modern economy, interest rates are usually higher than the inflation rate. However, when the inflation becomes excessive, the rate of inflation is usually much higher than any potential interest rate. Therefore, people with savings see the real value of their wealth wiped out. ]]> 2021-05-18 15:52:53 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536245040 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536246459 2) productivity fell → the decline in the economy’s output → a fall in the government’s tax revenue → printing money ]]> 2021-05-18 15:53:10 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536246459 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536247360 demand-pull inflation]]> 2021-05-18 15:53:21 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536247360 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536250093 More dollars translates to more spending, which equates to more aggregated demand.]]> 2021-05-18 15:53:52 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536250093 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536251247 Because it can leads to recession ]]> 2021-05-18 15:54:05 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536251247 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536252366 3) corruption ]]> 2021-05-18 15:54:18 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536252366 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536252951
Lack of Investment and Economic Growth

People start spending less and firms dont have the confidence to invest so this slows down the economy and the standard of living.

Menu Costs. 

Lack of Confidence in the Finance Sector]]> 2021-05-18 15:54:25 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536252951 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536257484 2021-05-18 15:55:19 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536257484 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536262575 Government doesn't care much about inflation, it doesn't affect to the government but to other people that has to pay for it ]]> 2021-05-18 15:56:21 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536262575 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536267520 4) governement price control ]]> 2021-05-18 15:57:20 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536267520 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536270401
Unexpected inflation results in unexpected redistribution of income.
Inflation is a drop in the value of money, so if prices rise, debtors benefit and creditors lose money. An employee with a fixed nominal wage loses money and the entity that pays the wage benefits. A person who lives on a fixed pension or has a fixed financial asset at nominal value may also suffer unintended losses.]]> 2021-05-18 15:57:57 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536270401 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536281991 Economists once believed an inverse relationship existed between inflation and unemployment, and that rising unemployment could be fought with increased inflation.]]> 2021-05-18 16:00:14 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536281991 https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536290416 It seriously affects the level of national exchange rate, messes up the order of import and export and financial order, and weakens the role of fiscal policy and monetary policy.]]> 2021-05-18 16:01:58 UTC https://padlet.com/jakubjstaniszewski/fyegncs0oegp0f8/wish/1536290416