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29 August, 09:01

Why is high inflation a bad thing?

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  1. 29 August, 09:14
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    because High inflation puts pressure on a government to increase the value of the state pension and unemployment benefits and other welfare payments as the cost of living climbs higher.
  2. 29 August, 09:30
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    Answer: High inflation means prices are raised. Because businesses are forced to raise prices, banks raise interest rates to maintain a good profit margin. Higher rated results in marginal businesses failing. This increases unemployment and affects the entire economy system as a whole.
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