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positive effect of inflation only applies when inflation is low and within an acceptable range, like say 2 to 4%.
benefits include reduction in unemployment; this occurs because most workers' wages are locked in by contract and with inflation, their real income actually decreases. this allow firms to hire more workers under steady and controlled inflation.
also, investments will increase because inflation is predictable hence firms will have a bigger expectation of profits
low inflation also keeps nominal interest rates low, adding to increased investments.
low inflation does not equal 0 inflation; achievement of inflation = 0 would lead to unemployment (keynesian demand pull)
negative effects of inflation occurs when there are excess levels of inflation.
these include distribution costs from lenders to borrowers (borrowers benefit from inflation), recipients to providers of fixed income (eg government payouts to pensioners are lower in real terms), taxpayers to government (wage increase will shift workers into higher tax brackets, but higher inflation causes real wage to be much lower)
also, there are output costs of inflation such as decrease in investments due to uncertainty of the future, increase in savings (decreased consumption), imports (foreign goods are cheaper) and decrease in export (local goods are more expensive); these contribute to decrease in GDP.