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Thursday, 5 July 2018

Inflation essay

                                                            Inflation Essay
                                 The simple meaning of inflation is - "expansion of money in circulation". When the flow of money in the market goes much higher than its normal circulation it becomes the cause of inflation. Then the international value of money (currency) comes down. There are certain reasons behind it. When there is scarcity, of commodities like food grains, vegitables,fruits,and other articles of daily requirements or regular use. in the market,the prices of those items goes up and people have to spend more money to pay the price for them. it led to higher flow of money and creates inflation in the market. There are other reasons like black marketing, corruption, low yielding cultivation, fall in production in mills and factories, higher prices of raw materials in the factories etc. one most importent reasons relating to it, is improper balance in export and import business and transactions. when the import is higher to export then the value of the currency would be less and there would is higher to export then the value of the currency would be less and there would be inflation.
                                             It is therefore necessary to check blackmarketing and corruption, to increase production with normal supply and distribution and to enhance export business. Then only inflation can be checked. 

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