Taming inflation
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The document discusses inflation, its types, and methods for taming inflation. It defines inflation as a general upward price movement and erosion of purchasing power. There are two types of inflation - demand-pull caused by increases in money supply, government purchases, or exports, and cost-push caused by increases in wages or costs of raw materials. Hyperinflation refers to extremely rapid inflation where prices rise so quickly the concept of inflation loses meaning. Taming inflation involves controlling and softening inflation to make it more favorable for economic development through fiscal policy, exchange rates, procurement programs, forecasting, and intelligent purchasing.
Taming inflation
- 2. WHAT IS INFLATION The overall general upward price movement of goods and services in an economy . When the general price level rises, each unit of currency buys fewer goods and services. inflation also reflects erosion in the purchasing power of money.
- 3. TYPES OF INFLATION DEMAND PULL INFLATION Increase in money supply Increase of government purchase Increase in exports COST PUSH INFLATION Increase in money wages rates Increase in money prices of raw materials
- 4. HYPER INFLATION Extremely rapid or out of control inflation. Prices increase are so out of control that concept of inflation is meaning less. The most famous example of hyperinflation occurred in Germany between 1922 to 1923
- 5. WHAT IS TAMING INFLATION The general meaning of taming is flat or we can say that make less strong or intense; soften. adapt to the environment for making a wild thing a domesticate oats. make fit for cultivation, domestic life, and service to humans.
- 6. It is process in which control the wild inflation and make it favorable for the economy. For each and every economy it’s a first and primary priority to tame the inflation and their development
- 7. HISTORY Taming Inflation in the Transition Economies (Russia , Georgia, Germany, Ukraine, Bulgaria, Romania ) STEPS TAKEN BY THEM Fiscal factors Exchange rate policy
- 8. TAMING INFLATION IN INDIA SECTORS EFFECTED IN INDIA THROUGH INFLATION FOOD SECTORS. REAL STATES. AIR LINES. EDUCATION SECTORS. TRANSPORT
- 9. TAMING METHODS STANDARD PACKING. GOOD MONSOON. AN AGGRESSIVE FOOD. PROCUREMENT PROGRAMME. OPEN MARKET OPERTIONS HIDDEN ADVANTAGE.
- 10. TAMING INFLATION IN ORGANISATION FORCASTING RISK BERAING CAPCITY INTELLGENT PURCHASE DEPARTMENT