From different angles, the impact of inflation on a country's national economic development is:

1, the impact on economic development. The rising price of inflation distorts the price signal, which easily leads producers to go astray in production, leads to the blind development of production, causes the abnormal development of the national economy, makes the industrial structure and economic structure abnormal, and leads to the imbalance of the whole national economy. When the abnormal economic structure caused by inflation needs to be corrected, the state will inevitably take various measures to curb inflation, leading to a sharp decline in production and construction and economic contraction. Therefore, inflation is not conducive to the stable and coordinated development of the economy.

2. Impact on income distribution. Inflation and currency devaluation have led to a continuous decline in the living standards of some low-income residents, and it is difficult for the majority of residents to improve their living standards. When inflation persists, it may cause social unrest and unrest.

3. Impact on foreign economic relations. Inflation will reduce the export competitiveness of domestic products, resulting in the outflow of gold foreign exchange reserves, thus devaluing the exchange rate.

The liabilities of individuals and enterprises have increased, because the real value of assets held has shrunk, while the mortgage loans of banks have not decreased. For example, when people buy a house through mortgage, deflation may make the value of the property owned by the buyers far lower than the debt they bear.

The impact of deflation

Generally speaking, moderate deflation is helpful to adjust the economic structure, squeeze out the "bubble" in the economy by intensifying market competition, and also promote enterprises to strengthen technological input and innovation, improve the quality of products and services, which has a positive effect on economic development.

However, excessive deflation will lead to a long-term sharp decline in the overall price level, tight money market, slow currency circulation and sluggish market sales, which will affect the enthusiasm of enterprises for production and investment, strengthen the residents' psychology of "buying up but not buying down", affect enterprises' reluctance to invest and residents' reluctance to buy, and limit the effective growth of social demand, which will eventually lead to weak economic growth and a decline in economic growth. From this perspective, deflation has a negative side to economic development. To this end, we must increase government investment to stimulate domestic demand, curb price decline and maintain basic price stability.