Explanation : A group of economists including Keynes is of the opinion that inflation, in one form or the other, is a factor which helps economic growth. Usually, it is argued that inflation tends to redistribute Income and wealth. The redistributive effect of inflation is always in favour of profit-earning class, that is to say, it redistributes income always from the wage-recipient class towards the profit-recipient class in the community. As a result, the saving ratio will increase because the marginal propensity to save of the profit earners is generally high as against the high marginal propensity to consume of the wage-earners because of their near-subsistence level of income. ....Read more