Essay on Inflation: Meaning, Measurement and Causes


essay on inflation

ADVERTISEMENTS: Let us make in-depth study of the meaning, measurement and causes of inflation. Meaning of Inflation: By inflation we mean a general rise in prices. To be more correct, inflation is a persistent rise in general price level rather than a once-for-all rise in it. Rate of inflation is either measured by the percentage [ ]. That demand inflation which is caused by an excess demand for supply rigidities, has no answer other than raising prices Cost inflation is inflation that is due to increased costs of inputs and the different factors of production, ie, motivated by the increased cost . The Inflation And Inflation Prediction Essay Words | 9 Pages. of literatures have already studied about the inflation and inflation prediction and in this paper literature review will be discussed from the theoretical aspect and empirical aspect.


Inflation refers to a continuous, general increase in the price of goods and services. Rise in prices is called inflation. Inflation at very fast rate is Hyper-Inflation, medium is Strato-Inflation and low lever is Creeping inflation. During the essay on inflation years the rise has abnormal and it has endangered the stability of our economy nationally and individually.

In Pakistan inflation has become an unending disease to our economy. Once a state is caught in the circle of inflation then it will be difficult for that state to get rid of it. There are various factors that contribute to the rise in prices.

Some are natural factors like unfavorable weather conditions which affect the food production and lead to the shortage of commodities in the market. With more money chasing fewer goods, the prices take to the wings, essay on inflation. Besides this natural problem there are man-made problems like hoarding which contribute to the rapid increase in prices.

The trading community which senses a shorting of certain commodities, especially the essential commodities, they resort to large scale essay on inflation. They release the hoarding products after essay on inflation in the prices and make a neat margin over their investment in the hoarded products. They get so much profit but it waters inflation.

The rise of prices in Pakistan can also be attribute to the despicable acts of traders, essay on inflation. Their only motive is to get maximum profit and so they try to charge lots of money from the customers as much as possible. This has created a class of people who are becoming richer day by day and the other class is becoming poorer. Hoarding is also essay on inflation a bad role in escalation of prices in the commodities.

One of the most important reasons for inflation is the deficit budgeting. In order to cover the gap Pakistan has been printing more paper currency because foreign aid and taxes can not cover up the deficit. Therefore there will be greater circulation of paper money. There will be hike in prices of domestic used products as the purchasing power of the people has increased.

Wrong taxation policy has also been responsible for the rise in prices. The hike in taxes results in greater desire to avoid taxes. Thus public takes wrong way of not paying taxes and there will be escalation in prices. The rate of interests has been increased in order to encourage savings and withdraw of currency.

The government is making efforts to increase industrial outputs so that the level of consumption is leveled with that of output. But unfortunately the government has not met with success in getting rid of inflation. The rise in prices goes non-stopped, some suggest that there should be demonetization of currency, but the government thinks that it is an essay on inflation method and will create doubts in the minds of the public about the stability of the government, essay on inflation.

The rise in the prices of petrol has affected the prices in our country. So we have to import a huge amount of oil every year. Moreover no step has been taken against the traders who are mainly responsible for unreasonable rise in the prices.

I want to get you on facebook for more help in future. Advice i warm welcome. Farah Essay on inflation I would help you, but to be frank I am having my papers in academy, due to which essay on inflation too much stuck. TY For topic. Explanation Is very nice and affective. I used this in morning Assembly and i got Alot Claps.

Sundus These are old postings, for new postings i will have quotations in essays…. No new postings uptill now. My question is which inflation has increase more in last 13 years in pakistan….????? Demand Or Supply…???? Ayesha Khan Miss thank you essay on inflation your appreciative feedback and i whole heartily thank you for the criticism too. I just myself need help sometimes, essay on inflation. I would really essay on inflation very obliged. Aliza It is very simple and useful essay which is helpful to clear my concept about inflation.

Thank youu sooooooooooooooooooo much., essay on inflation. Yes you are right inflation is a very big problem of our country.

But how we solve this problem??? Gud effort…One thing that i noted z…u should kept in mind that legth of every paragraph should b same…it will make a positive impact on reader. Mr Sanjay do you an easy for me on inflation of electrical material for last 4 years because i m an electrical contractor and i have completed a project at 4 years old quotation and consultant required a latter for reason of escalation.

Good one,now i know why pakistan is not doing so well in economy. I am not an Indian. You are commenting using your WordPress. You are commenting using your Google account, essay on inflation. You are commenting using your Twitter account.

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essay on inflation


Economic essays on inflation. UK inflation since Definition – Inflation – Inflation is a sustained rise in the cost of living and average price level. Causes Inflation – Inflation is caused by excess demand in the economy, a rise in costs of production, rapid growth in the money supply. The Inflation And Inflation Prediction Essay Words | 9 Pages. of literatures have already studied about the inflation and inflation prediction and in this paper literature review will be discussed from the theoretical aspect and empirical aspect. Inflation Essay. Inflation Introduction and Definition Inflation is a phenomenon which happens world wide. It causes many problems to countries all over the world. Inflation is the rise in the general level of prices. When inflation occurs, each ringgit of income will buy fewer goods and services than before. Essay on Inflation and Money.