Why may prolonged high inflation lead to social unrest, particularly among fixed-income groups and pensioners?
1
Because real incomes rise faster than nominal incomes.
2
Inflation effectively reduces the real value of fixed incomes, leading to a lowered standard of living.
3
High inflation increases savings rates, benefitting pensioners.
4
Fixed-income groups are often shielded from inflation through government policies.
5
Because high inflation provides better investment returns, benefiting retirees.