Factors That Contribute To An Increase In Inflation

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In today’s terms the main cause of the increase in inflation is the rising prices; the prices go on increasing day by day and are generally cause by the storage of the of the essential commodities by the so called black marketers and wholesalers who go hand in glove with the politicians.

The second cause that increases inflation is unemployment,  today the youth of the country after so much of turmoil and hard work stand no where. If unemployment cannot be controlled at this stage then what will happen to the whole country, the youth of today is the future of tomorrow.

Thirdly the main cause which can increase inflation is corruption, it is well said that “Justice delayed is justice denied”, corruption is eating up the the economy as said corruption begets corruption and should be stopped at all levels.

When you see that in order to produce, you need to obtain permission from men who produce nothing — when you see money flowing to those who deal, not in goods, but in favours — when you see that men get richer by graft and pull than by work, and your laws don’t protect you against them, but protect them against you, then you may know that your society is doomed..”

Ayn Rand

News Zealand, Denmark, Singapore and Sweden are among the least corrupt nations and among the most corrupt are Somalia, Afghanistan and Sudan.

If all these factors are taken into consideration the economy and rising inflation of any  country can be controlled. When price rise is controlled then the inflation gets controlled automatically.

Still other experts believe that it is normal for the economy to be effected by inflation. This theory is shown by the Phillips curve which allows inflation to cycle up and down according to the shift between unemployment and inflation. Another theory of inflation uses the gross domestic product to measure the effects of inflation on the economy. This theory uses what is called potential output. This means that the state of the economy is measured against what is determined to be the best level of production for the nation. If the gross domestic product is higher than it should be and if unemployment is lower than it should be the result is that the rate of inflation will increase because suppliers will raise their prices and built in inflation will get worse.

About the author :- Dr Bhandari a Doctor by profession is an active thinker, having thought provoking views on today’s global society and culture in general and about Indian issues in particular, some of his views often contradict established views of modern society which he thinks is more busy in finding new problems then trying to solve existing problems.

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