Short Term vs. Long Term Remedies of Inflation

Inflation Short bourn Remedy vs. Long Term Solution Term Paper Prepared for: Dr Mohammed Farashuddin Visiting Professor Macroeconomics (E202) Prepared by: Nafiz Alam caravansary Bishal (ZR 47) BBA 18th Section A 21 May 2012 Institute of Business Administration University of Dhaka Contents 1. entryway3 1.1. Variations of Inflation:3 1.2. Causes of Inflation4 2. Effects of Inflation4 2.1. Negative effect of unanticipated pomposity:4 2.2. Positive effects of pomposity:4 2.3. boilersuit effects of inflation:5 3. Remedies6 3.1. Short term remedy of inflation:6 3.1.1. Monetary Policy:6 3.1.2. Fiscal Policy:7 3.1.3. Export and importation:8 3.2. Long Term Solutions of Inflation:8 3.2.1. Cost of Production:9 3.2.2. reading and Training:9 3.2.3. Population Planning:9 3.2.4. Economic Planning:10 3.3. compendium:10 3.4. Mistakes made by governments over the years:11 4. Conclusion12 Bibliography13 1. Introduction If we went back up a year in time, we would still be qualified to purchase two candies in one taka. The same sucker of candies is now sold at 1TK each. The increase in the toll of this particular glaze over is affected by a result of economical factors.

Maybe, the demand has grown faster than the yield for the candy or the cost of production has increased since last year. This suppuration of price is known as inflation. In economics, inflation is a rise in the general level of prices of goods and services in an parsimony over a period of time (Blanchard, 2000). Consequently, inflation also reflects erosion in the purchasing power of money a loss of real value in the versed medium of exchange and unit of account in the economy (Central Bank of Iceland). 1.1. Variations of Inflation: * Deflation is a general decline in prices, often caused by a reduction in the supply of money or credit. This is the opposite of inflation. * Hyperinflation is unusually rapid inflation. In... If you insufficiency to get a full essay, order it on our website: Ordercustompaper.com

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