Question

Answer the following :

What are the Non - economic effects of inflation?

Answer 1

1. Inflation basically widens the gap between the rich and the poor and therefore, creates social friction and conflicts.

2. Due to inflation, some businessmen resort to unethical, unfair and illegal activities such as adulteration, hoarding and quality deterioration, thereby affecting moral values.

3. Inflation also increases the possibility of corruption which is reflected in political uncertainties.