The boom-and-bust business cycle is not predictably periodic, since inflationary policy depends on the timing of political decisions. Consequently, another of its long-term effects is to increase market uncertainty, thereby amplifying the risk disutility to investors. The discouraging effect of monetary intervention on investment—and hence on productivity and wages—may persist for decades.

An especially attractive feature of inflation to policy-makers is that they can readily evade responsibility for its consequences, if the electorate is unfamiliar with the principles of human action. For each of the adverse effects of the business cycle, they can point the finger of blame to scapegoats outside the government:

Spiraling prices are blamed on greedy businessmen and speculators.

Spiraling wages are blamed on greedy workers and unions.

Spiraling interest rates are blamed on greedy bankers, investors, and creditors.

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		Spiraling prices are blamed on greedy businessmen and speculators.
		Spiraling wages are blamed on greedy workers and unions.
		Spiraling interest rates are blamed on greedy bankers, investors, and creditors.