Inflation problem is there when the supply of money is more higher than the supply of goods. It means that increase in money and price which does not result in increased production of goods. There are many reasons of rising prices. Firstly, when people start using diffetent things more their prices rise. Prices of different things rise if there supply becomes less for the reason of strikes, factories closure, rainfall absence, floods and so on. Another cause of rising prices is the rise in the standards of living of people. When people start living a better life with an increase in their earning they need more shoes, clothes, food and other daily use things.
They want to buy more expensive things for their comfort and enjoyment like heaters, electric fans, airconditions, and LCDs and so on.
Education becomes more common in people and they began reading more newspapers, books and magazines. When production increase the cost of production aslo rise because of more labourers and workers and more price of raw materials and so on. The government will surely forced to print more currency notes and increase the supply of money in society. Then it can pay more salaries and wages to their workers. But if there is no increase in the production of goods as much as its requries than prices suddenly jump. A country may import more raw material for its factories. Country may import more machines and tools and food items. The prices of these may be high in world market. Then tha country should be importe them on high price.
Infact all countries should take serious and joint steps to overcome on this inflation. Other world agencies should try to solve disputed between countries. There should be peace atmosphere everywhere. Countries and nations will work together and keep prices at a proper level. They will stop wasting there resources on wars. The world population increacing should be checked. It is difficult to increase the production of goods as fast as the population is rising. It is very important to study all causes of inflation and then these causes must be eliminated.
They want to buy more expensive things for their comfort and enjoyment like heaters, electric fans, airconditions, and LCDs and so on.
Education becomes more common in people and they began reading more newspapers, books and magazines. When production increase the cost of production aslo rise because of more labourers and workers and more price of raw materials and so on. The government will surely forced to print more currency notes and increase the supply of money in society. Then it can pay more salaries and wages to their workers. But if there is no increase in the production of goods as much as its requries than prices suddenly jump. A country may import more raw material for its factories. Country may import more machines and tools and food items. The prices of these may be high in world market. Then tha country should be importe them on high price.
Infact all countries should take serious and joint steps to overcome on this inflation. Other world agencies should try to solve disputed between countries. There should be peace atmosphere everywhere. Countries and nations will work together and keep prices at a proper level. They will stop wasting there resources on wars. The world population increacing should be checked. It is difficult to increase the production of goods as fast as the population is rising. It is very important to study all causes of inflation and then these causes must be eliminated.
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