108k views
1 vote
Why is a high rate of inflation generally considered harmful to an economy

User Paddyd
by
6.3k points

1 Answer

2 votes
Inflation is caused by increases in an economic condition that is caused by an increasing money supply or rapid increases in the cost of production. If a government prints too much currency, prices rise to meet the increasing supply of money.
User The Great
by
6.7k points