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Inflation as the continues rise in the general of prices in a country’s economy. So,
there are many causes of inflation. Firstly, cost-push inflation this result from cost
inflation prices increase immediately due to increases in cost wages and raw
materials. Secondly, devaluation that is value of currency makes a downward
adjustment, after devaluation the SAME amount of foreign currency buys greater
quantities of the country’s currency than before the devaluation. this means that
the counters product and services are likely to be sold at Lowe prices in foreign
markets, making them more competitive(economicshelp,2019). Finally, rising
wages this means that the cost of goods is high as a result of higher wages, people
are shown to have to increase the percentage of prices they assume for the good
and services that are provided to them goods and services have acicular effect on
increasing wages(Investopedia,2019). In addition the best example for this
reasons British. The British are going to drop the currency further. So investors
stopped buying British debt and the International Monetary Fund had to bail out
the UK. Logically, the value of the currency collapsed, the value of imports
increased, and the rate of inflation increased. Some have noted that this began to
happen a few weeks ago. Is there any reason for creditors currently worried
about the love of Molton in the negative because the government has resorted to
what is called quantitative easing, a new term to replace the printing of currency.
The British government to issue two hundred billion pounds (20% of GDP to
obtain equivalent debt). Therefore, there is always the possibility to repay debt
with something, at a lower value, and this of course means the depreciation of
the pound as the government tries to reduce interest rates. That is, it seeks to
Reduce debt by raising the rate(economicshelp,2019).
Solutions to Inflation. (n.d.). Retrieved from
https://www.ukessays.com/essays/economics/the-causes-and-possible-solutions-
of-inflation-economics-essay.php

(n.d.). Retrieved from https://www.google.ae/search?


q=causes+of+inflation+population&tbm=isch&source=iu&ictx=1&fir=vZDJj2-
JkHSK4M%3A%2CuHCA3aZ6VFDLhM%2C_&vet=1&usg=AI4_-
kQkXPiFiM2lnARPTKZkjR_bQDYgrQ&sa=X&ved=2ahUKEwjU1P3IoujoAhUB6RoKHb
IbDyMQ9QEwAHoECAoQAw&biw=1366&bih=655#imgrc=vZDJj2-JkHSK4M:

Pettinger, T. (2019, November 19). Causes of Inflation. Retrieved from


https://www.economicshelp.org/macroeconomics/inflation/causes-inflation/
Solution

There are four key instruments that can be used to regulate the economic system:
(1) fiscal policy; (2) monetary policy; (3) debt management (which can be viewed
as part of fiscal policy); and (4) direct taxes (recently referred to as "income
policies"). Money Delivery: Credit availability and use. Debt management is
concerned with managing fiscal deficits to affect production and job rates — one
of the Keynesian economics' core principles. Direct controls, which are the most
effective in the short term in the arsenal of tools to counter inflation, consist of
price and wage controls, rationing and allocations that as long as they are subject
to administrative control, they are perceived to be inconsistent with the principles
of democratic government in certain regions. Discussions about the efficacy and
timing of the implementation of the aforementioned control methods sometimes
lose sight of the goals or objectives — namely, to what degree they can actually
bring about real productivity increases. Therefore, instruments should be
implemented to solve the question of inflation that will enhance efficiency.

Alternative solutions to the problem of inflation. (n.d.). Retrieved from


https://www.tandfonline.com/doi/abs/10.1007/BF02780542?
journalCode=rfse20#
Name :Tariq Ali Alshidi
ID:126208

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