Impact of High Inflation on Businesses

The chapter delves into the challenges faced by businesses due to high inflation, including the need for frequent price adjustments, the inefficiency costs of inflation, and the complexities of pricing decisions. It discusses examples of businesses adjusting strategies like shrinkflation and the dynamics of pricing in response to competition and consumer behavior. The chapter also explores the implications of inflation on wealth distribution and the economy, highlighting concerns about potential price controls and interventions during periods of high inflation.