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Inflation In The World Economy

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Inflation In The World Economy

Postby david fx » Tue Sep 18, 2012 9:56 am

In economics known the name of inflation, where inflation is a process of rising prices in general and ongoing (continuous), associated with the market mechanism that can be caused by various factors, among others, increased consumption, excess liquidity in the market that trigger consumption or even speculation, as well as due to the lack of distribution of a product launch.

In other words, inflation is also a decline in the value of the currency continuously. Inflation is the process of an event, not the high or low of a price level. That is, the price level is considered high inflation does not necessarily indicate. Inflation is an indicator to see a level of change that is considered to occur when the price increase takes place continuously and mutually interact.

The term inflation is also used to mean an increase in money supply which is sometimes seen as the cause of rising prices. There are many ways to measure the rate of inflation, which are common and often used is the CPI and the GDP deflator.

Inflation can be classified into four groups, namely inflation is mild, moderate, severe, and hyperinflation. Mild inflation occurs when prices rise is below the 10% in a year. Inflation is between 10% – 30% in a year. weight between 30% – 100% in a year. and uncontrollable hyperinflation or inflation occurs when prices are rising at a rate of over 100% in a year. The increase in the price of one or two items alone can not be called unless the rise in inflation was widespread (or result in price increases), on the other items.

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Re: Inflation In The World Economy

Postby Haley12 » Tue Sep 18, 2012 11:00 am

Thanks david to share another good article about Inflation. I am familiar with most of the points shared by you. However Inflation types inflation is mild, moderate, severe and hyperinflation are new for me.
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Re: Inflation In The World Economy

Postby Deacy » Sat Sep 22, 2012 8:05 am

We are now experiencing a new challenge; the globe blowing up or risky blowing up in oil, maize, grain, and so on. The sequence of risky activities are unbeatable and have triggered much of the uncertainty from technical percolate, real estate percolate and now globe blowing up. As when the feeling is intensely affected, the cash is pursuing after a restricted road to increase profits.
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