Inflation will encourage manufacturers to invest to increase production. Those of higher yields. But if inflation is already quite severe or very severe. It would not be good for the economy as a whole but also creates a negative effect on prices of goods and services, ie higher than the purchasing power of the people that have to be made up of product can not be sold. Because people do not have sufficient Will ultimately result in the production of reduced investment. Thus the productivity of the nation's decline. Individuals earn less