Inflation is a reflection and a result of the economic policies followed. In fact, the presence of inflation in the national economy means the failure of economic policies to achieve one of the most important objectives, namely the goal of maintaining the general stability of prices. On the other hand, there is a strong and direct link between economic policies and objectives and the efficiency and effectiveness of their performance and the structural and structural aspects of the political system.
Without going into a lengthy discussion of the various definitions of economic policy, it can be argued that economic policy in general is reflected in the "range of measures - qualitative and quantitative - which aimed at achieving a number of objectives set by the political system"The definition of inflationThe "inflation" of the biggest expressions of economic common is that despite the widespread use of this term it does not have an agreement among economists on its definition is due to the split of opinion about defining the concept of inflation as the term is used to describe a number of different situations can choose from the following cases ( Secretary, 1983: 16):
1. Excessive rise in the general level of prices.
2. Rising incomes in cash or a component of cash income such as wages or profits.
3. Rising costs.
4. Create excessive cash balances.It is not necessary to move these different phenomena in one direction at one time ... In the sense that it is possible to happen without a rise in prices to be accompanied by a rise in monetary income ... They can occur without a rise in costs to be accompanied by a rise in profits ... It is likely to occur in excessive money creation without being accompanied by a rise in prices or cash income (Bazai, 1997: 30). In other words, the different phenomena that can be called on their respective "inflation" are phenomena that are independent of each other to some extent and this independence is the one who raises the confusion in defining the concept of inflation.
And distinguish the term inflation phenomenon called them, and therefore composed a set of conventions, including:
1. Price inflation: the surge in prices.
2. Income inflation: a rise in cash income such as wage inflation and the inflation of profits.
3. Cost inflation: the rising costs.
4. Inflation: in the creation of any excessive cash balances.
Hence the view of some authors that when he uses the term "inflation" without discrimination case, called the meaning of this terminology have inflated prices because the surge in prices is the meaning that mind going out to him directly when he mentions the term inflation.Date of inflation:Given the impact of inflation, whether it be on the distribution of national income, or on the evaluation of projects, or on the balance of payments, or on the productive efficiency ... In view of the phenomenon of inflation generated by the social effects of corruption so as to increase and spread of bribery and increasing brain drain of the art outside, the more conflicts between the layers of society ... All of this led to great interest in the phenomenon of inflation, to search for the most important reasons leading to it. In the nineteenth century the focus was on the side of one of the aspects of inflation, (inflation) (so that if the increased money supply for the demand for them is impaired, in other words, the higher the price level, and if increased demand for money in relation to display their value, in other words decreased the level of prices). Then came the economic analysis (Keynes), where he focused on the factors that control the level of national income, cash, especially with regard to a penchant for consumption, and the interest rate and the marginal efficiency of capital. Thus, reach (Keynes) that inflation is the following: increase the size of aggregate demand on the size of the display real significant increase and sustained, leading to a series of surges and continuing in the general level of prices, in other words crystallize what the inflation in the presence of excess demand for goods exceeds the The estimated current production capacity. In the second half of the twentieth century emerged Swedish School of modern, so made to the expectations of particular importance in the critical analysis of inflation, is of the opinion that the relationship between aggregate demand and aggregate supply does not depend on the plans of national expenditure on the one hand and plans of national production on the other hand, or more exactly, depends on the relationship between investment plans and savings plans (Bazai, 1997: 83).Types of inflation:-1 Inflation Afternoon: checks for this kind of inflation, while no corresponding increase in aggregate demand increase in the rates of production, which is reflected in the impact of rising prices.
2 - creeping inflation: is this type of slow inflation rise in prices.
3 - the repressed inflation: a condition which is to prevent prices from rising through the policies are put controls and restrictions that prevent an agreement holistic and high prices.
4 - hyperinflation: the case of high rates of inflation, high rates associated with speed in the circulation of cash in the market, may result in this kind of inflation to the collapse of the national currency, as happened in Germany during 1921 and 1923 in Hungary in 1945 after World War II (Amin, 1983: 35).The reasons for the emergence of inflation:
Inflation arises due to different economic factors and the most prominent of these reasons:
1 - inflation resulting from the costs: the establishment of this kind of inflation due to high operational costs in manufacturing companies or industrial, as a contribution to the departments of companies to raise wages and salaries of its members of staff, particularly those working at the sites of productivity and that comes because of the demands workers higher wages (age, 1416 : 40).
2 - inflation resulting from the application: the establishment of this kind of inflation and increased demand for cash, which is accompanied Fixed display of goods and services, as the rise in aggregate demand is not offset by an increase in production. Which leads to higher prices.
3 - Bachelor of inflation changes in the composition of the Faculty of overall demand in the Aalaguetsad even if the request is excessive or not there is an economic focus since the prices are subject to height and can not be reduced despite the drop in demand.
4 - inflation resulting from the exercise of the economic embargo to other States, exercised by external forces, as is the case of Iraq and Cuba, therefore, eliminates the import and export in the state of siege is total, leading to high rates of inflation and thus lower the value of national currency and high prices at rates not reasonable (Bazai, 1997 : 91).In the end, I hope to God Almighty to be reconciled in view of inflation in a simple form of this term is considered the most important terms in the fundamental analysis, especially in the field of Forex and seriously affect the economy in the States and the movement of currencies mainly
Without going into a lengthy discussion of the various definitions of economic policy, it can be argued that economic policy in general is reflected in the "range of measures - qualitative and quantitative - which aimed at achieving a number of objectives set by the political system"The definition of inflationThe "inflation" of the biggest expressions of economic common is that despite the widespread use of this term it does not have an agreement among economists on its definition is due to the split of opinion about defining the concept of inflation as the term is used to describe a number of different situations can choose from the following cases ( Secretary, 1983: 16):
1. Excessive rise in the general level of prices.
2. Rising incomes in cash or a component of cash income such as wages or profits.
3. Rising costs.
4. Create excessive cash balances.It is not necessary to move these different phenomena in one direction at one time ... In the sense that it is possible to happen without a rise in prices to be accompanied by a rise in monetary income ... They can occur without a rise in costs to be accompanied by a rise in profits ... It is likely to occur in excessive money creation without being accompanied by a rise in prices or cash income (Bazai, 1997: 30). In other words, the different phenomena that can be called on their respective "inflation" are phenomena that are independent of each other to some extent and this independence is the one who raises the confusion in defining the concept of inflation.
And distinguish the term inflation phenomenon called them, and therefore composed a set of conventions, including:
1. Price inflation: the surge in prices.
2. Income inflation: a rise in cash income such as wage inflation and the inflation of profits.
3. Cost inflation: the rising costs.
4. Inflation: in the creation of any excessive cash balances.
Hence the view of some authors that when he uses the term "inflation" without discrimination case, called the meaning of this terminology have inflated prices because the surge in prices is the meaning that mind going out to him directly when he mentions the term inflation.Date of inflation:Given the impact of inflation, whether it be on the distribution of national income, or on the evaluation of projects, or on the balance of payments, or on the productive efficiency ... In view of the phenomenon of inflation generated by the social effects of corruption so as to increase and spread of bribery and increasing brain drain of the art outside, the more conflicts between the layers of society ... All of this led to great interest in the phenomenon of inflation, to search for the most important reasons leading to it. In the nineteenth century the focus was on the side of one of the aspects of inflation, (inflation) (so that if the increased money supply for the demand for them is impaired, in other words, the higher the price level, and if increased demand for money in relation to display their value, in other words decreased the level of prices). Then came the economic analysis (Keynes), where he focused on the factors that control the level of national income, cash, especially with regard to a penchant for consumption, and the interest rate and the marginal efficiency of capital. Thus, reach (Keynes) that inflation is the following: increase the size of aggregate demand on the size of the display real significant increase and sustained, leading to a series of surges and continuing in the general level of prices, in other words crystallize what the inflation in the presence of excess demand for goods exceeds the The estimated current production capacity. In the second half of the twentieth century emerged Swedish School of modern, so made to the expectations of particular importance in the critical analysis of inflation, is of the opinion that the relationship between aggregate demand and aggregate supply does not depend on the plans of national expenditure on the one hand and plans of national production on the other hand, or more exactly, depends on the relationship between investment plans and savings plans (Bazai, 1997: 83).Types of inflation:-1 Inflation Afternoon: checks for this kind of inflation, while no corresponding increase in aggregate demand increase in the rates of production, which is reflected in the impact of rising prices.
2 - creeping inflation: is this type of slow inflation rise in prices.
3 - the repressed inflation: a condition which is to prevent prices from rising through the policies are put controls and restrictions that prevent an agreement holistic and high prices.
4 - hyperinflation: the case of high rates of inflation, high rates associated with speed in the circulation of cash in the market, may result in this kind of inflation to the collapse of the national currency, as happened in Germany during 1921 and 1923 in Hungary in 1945 after World War II (Amin, 1983: 35).The reasons for the emergence of inflation:
Inflation arises due to different economic factors and the most prominent of these reasons:
1 - inflation resulting from the costs: the establishment of this kind of inflation due to high operational costs in manufacturing companies or industrial, as a contribution to the departments of companies to raise wages and salaries of its members of staff, particularly those working at the sites of productivity and that comes because of the demands workers higher wages (age, 1416 : 40).
2 - inflation resulting from the application: the establishment of this kind of inflation and increased demand for cash, which is accompanied Fixed display of goods and services, as the rise in aggregate demand is not offset by an increase in production. Which leads to higher prices.
3 - Bachelor of inflation changes in the composition of the Faculty of overall demand in the Aalaguetsad even if the request is excessive or not there is an economic focus since the prices are subject to height and can not be reduced despite the drop in demand.
4 - inflation resulting from the exercise of the economic embargo to other States, exercised by external forces, as is the case of Iraq and Cuba, therefore, eliminates the import and export in the state of siege is total, leading to high rates of inflation and thus lower the value of national currency and high prices at rates not reasonable (Bazai, 1997 : 91).In the end, I hope to God Almighty to be reconciled in view of inflation in a simple form of this term is considered the most important terms in the fundamental analysis, especially in the field of Forex and seriously affect the economy in the States and the movement of currencies mainly
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