This weeks reading on inflation
29 Nov 2015 16:42 #8687
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This week a got to read a wonderful piece on inflation from Janet Yellen. The talk about inflation and its economics. Today, nations and people around the world live at the mercies of the unpredictable future changes. In a modern society where the crucial factors of survival are tagged on economy, it is the same place where the largest anomalies occur in context of human history. The everyday discussion is about concerns on the economy phenomena that try to threaten the future of families and that of the nations. Perhaps the most controversial factor of economy is inflation. Inflation is the continuous increase in prices of goods and services or sometimes referred to the increased decline in the value of money.
Therefore money will lose value, such that one cannot be able to buy the same quantity of goods and services as before. Inflation has plagued the economy of nations and the globe for many centuries and sometimes leads to immense effects. In the report it addresses the concept of inflation, the causes, and the effects of inflation on an effort to prescribe recommendations on how to combat inflation. Since inflation is the continuous increase in prices of goods and services or sometimes referred to the increased decline in the value of money. Therefore money will lose value hence one cannot be able to buy the same quantity of goods and services as before.
The causes of inflation have been a matter of discussion for centuries today. Regardless, inflation is caused entirely when the aggregate demand is able to exceed aggregate supply. The US government including price control, rational wage policy, and increase in production has employed other measures. Indeed, inflation can lead to immense effects when not controlled as we learned. It is essential for governments to implement major measures to curb the rising inflation using fiscal and monetary policies simultaneously.
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