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Inflation is often viewed as an economic phenomenon, with mostly economic effects. Policymakers worry about what inflation might do to housing markets and express concern about government borrowing costs. They might note changes in individual economic behavior, such as a shopper pinching pennies at the grocery store. Politicians worry about being voted out of office if they are blamed for its economic impact.
However, inflation is associated with more than just economics and electability. It is also linked to political instability. The historical record contains many cases where inflation went hand in hand with major political realignments, coups and even
Middle-East Arab News and Opinion - Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities
(Bloomberg Opinion) Inflation is often viewed as an economic phenomenon, with mostly economic effects. Policy makers today worry about what inflation will do to the housing market; they express concern about government borrowing costs.