How inflation affects the functions of money? Essay Example

Inflation refers to the continuous increase in prices of goods and services, leading to a higher cost of living. Money plays multiple roles such as being widely accepted for trading goods and services domestically and internationally. It also serves as a means to store wealth in monetary terms, acting as a unit of account for measuring value and enabling comparisons. Moreover, money facilitates deferred payment, encouraging household consumption by allowing purchases today with future payment. However, inflation has detrimental effects on the various functions of money. The decrea