Causes Of Social Unrest

1. Energy crisis

2. Sugar crisis

3. Rising oil prices

4. Poverty

5. Terrorism

6. Illiteracy

7. Swat operation

8. Political unrest

9. Extremism

10. Drone attacks

Sunday, November 22, 2009

Inflation- general rise in price level



It means shortage of money or increase in the supply of money owing to such an increase in price. Actually it is a broad variable and complex term. In economics inflation means a rise in the general level of prices of goods and services in an economy over a period of time, resulting in fewer goods and services for a larger seen of money.

It has various kinds and forms, each having a different effect:

Creeping inflation: - healthy trend as it increases development.

Walking inflation: - affects savings.

Running inflation: - it is hard to control and it also affects consumption and savings. And it leads to economic recession.

Hyper inflation: -is disastrous and fatal to economy.

Cost push inflation: - it occurs when cost of production increases.

Demand full inflation: - result of aggregate demand of a commodity.

Inflation is usually estimated by calculating the inflation rate of a price index, mostly consumer price index. It is the percentage rate of change of a price index over time.

Its effects can be both negative and positive. Negative effect includes loss in stability in real value of money over term and discourages investment in savings. Positive effect includes a mitigation of economic recessions and debt relief by reducing the real level of debt.

Inflation can be controlled by a long term and short term sound economic planning. Market competition can bring about reduction or low rate of inflation. Indigenous industry should be promoted to reduce inflation. Accessible and cheaper goods can minimize the adverse effects of inflation. These can also provide people with alternatives. This may bring low standard of living but people are protected against adverse effects of inflation. Proper monitoring and regulatory control can help in reducing inflation. Retailers and hawkers sell things of daily use at their own will. They do so because there is no check and balance. There is nobody to enforce law and evaluate the prices at which things are sold.

Inflation can be viewed as an international phenomenon. Only sound planning by the government can avert it. Inflation is a misery and people can be saved from this misery through mutual effort.


5 comments:

  1. Very informative artical. Pakistan is also suffering from this problem. I hope Pakistan can over come this problem.

    ReplyDelete
  2. great writing
    illetracy is very common in pakistan

    ReplyDelete
  3. very well written article, and i realy enjoyd whie reading it..

    ReplyDelete
  4. gud work done..specially the explanation of the types of inflation mentioned.

    ReplyDelete

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