... quantified or measured with and certainty. This factor has and will continue to understate the validity of results generated through the research and efforts of economists in their quest to find the "true" costs of inflation to the economy. There is evidence that does detail the adverse impacts of inflation to the economy, namely in the areas of economic growth, resource efficiency, productivity, investment and employment. It s simply a case where the exact costs are unknown. A price level characterized by in stability can lead to great uncertainty in the economy. If the inflation level of a country is volatile and varying on a continuous basis then the level of investment, consumption and economic growth are likely to be impeded. The rationale for this, supported through historical reference, is that in such a case, firms become increasingly reluctant to invest in new plant and equipment. This reluctance is derived from ...

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