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Some studies suggest that inflation negatively impacts well-being by increasing poverty and reducing income share, while other studies indicate that long-run inflation can reduce wealth inequality and potentially raise average welfare.
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The impact of inflation on citizen well-being is a critical area of study in economics and social sciences. This research explores how inflation affects various aspects of life satisfaction, income distribution, and overall happiness, with a focus on different demographic groups and economic conditions.
Perceived Inflation and Well-Being:
Inflation and Poverty:
Inflation vs. Unemployment:
Macroeconomic Crisis Impact:
Distributional Impact of Inflation:
Inflation has a multifaceted impact on citizen well-being, affecting perceived living standards, income distribution, and overall happiness. While high inflation tends to exacerbate poverty and reduce the well-being of the poor, its relative impact compared to unemployment varies across different regions and demographic groups. Additionally, the distributional effects of inflation on income, wealth, and consumption are complex and depend on various economic factors. Overall, managing inflation is crucial for maintaining and improving citizen well-being.
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