A Study on Inflation Effect on Economy

Abstract

One of the main financial worries of the twenty-first century is inflation. In late 2009,
surveys of the general people listed inflation as India's top issue. Even while the rate of
inflation has decreased since late 2012, it is still there, and many investors believe that it
will soon return to higher levels. A greater effort is being made to find and assess
investments that will shield investors from inflation as a result of the ongoing concern
about inflation. Liability inflation hedges are generally assets that have the capacity to
shield investors from the consequences of inflation. One of the greatest inflation hedges in
previous years has been thought to be gold.
There is currently no research on gold as an inflation hedge, despite previous studies examining
this idea and some recent studies utilizing just corporate real estate. This study looks at the
economic variables that cause inflation to rise as well as the variables that inflation affects both
favorably and unfavorably.