Suppressed inflation refer to a situation in which rising price are checked by taking some measures just as Rationing price control etc by the government under suppressed inflation because of inexperienced and corrupt officers responsible for administering price control and rationing, black market raises its ugly head. According to Prof. Friedman “ Supressed inflation is dangerous than open inflation. Economists like Milton and Halm are of the opinion that open inflation is more appropriate than suppressed inflation. It is so because under suppressed inflation due to rationing of price control evils like black market, corruption are resources of inequitably distributed.
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