Inflation undermines economic stability from "summary" of Capitalism and Freedom by Milton Friedman
Inflation can have a detrimental effect on the stability of an economy. When prices rise rapidly and unpredictably, individuals and businesses struggle to make informed decisions about saving, spending, and investing. This uncertainty can lead to economic instability, as people become hesitant to engage in long-term planning or commitments. Moreover, inflation erodes the value of money over time. As prices increase, the purchasing power of individuals decreases. This can have a particularly harsh impact on those living on fixed incomes, such as retirees or individuals with low-wage jobs. As the cost of living rises, these individuals may find it increasingly difficult to afford basic necessities, leading to financial strain and potential social unrest. Inflat...
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