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Tuesday 12 November 2019
Inflation is known as a continuous rise in the overall price level and is always associated with a continuous decline in the value of money.
Inflation rates are governed by a range of factors, including the country's monetary policy, the size of gdp, the trade balance with other countries, the country's self-sufficiency ratios of industrial and agricultural goods and products and population growth rates.
Inflation comes from the large and persistent demand for goods and products and the lack of supply, the imbalance between supply and demand in favour of demand, leading to a cumulative rise in the prices of goods, products and services and a successive decline in purchasing power.
For the money.
Inflation is also an economic phenomenon to which various countries of the world are exposed to various capital or directed economic systems.
Inflation causes negative economic and social impacts on members of society, which vary in severity, requiring action to reduce these negative impacts, both economic and social.
Inflation in development has a negative impact, particularly on the government's economic policies and plans because of the price disparity between the estimates made in the economic plans for their implementation and the subsequent changing reality due to high prices resulting from inflation.
Therefore, it is necessary to work with the competent authorities in Iraq to reduce the high inflation rates and work to control them, and always be in accordance with the reasonable and economically acceptable limit and not have severe negative effects in order to reduce their economic and social consequences, because of Other negative effects of inflation increase the financial gap between the wealthy and low-income people in favour of the first category due to the erosion of these individuals' savings due to price increases going to them, which means increasing the impoverishment of the poor, increasing the wealthy and causing an increase in the class gap between the strata society, leading to increased deprivation among many groups in
Controlling inflation is very important in order to continue to work for economic development and welfare for the members of society resulting from price stability and enable the majority of citizens to buy goods and services at prices
Acceptable. Inflation rates can be reduced by reforming fiscal and monetary policies and using fiscal and monetary instruments properly, thereby reducing inflation rates and bringing them to a state of control and keeping them within economically permissible limits.
Therefore, it is necessary to develop plans to eliminate this economic problem with social dimensions in Iraq and not make it have significant negative impacts, and to allow it to influence the policies of economic reform and economic development negatively, and can benefit from the results of research Economic science in the development of these plans and their division in time and mechanisms for the use of fiscal and monetary policy, as well as the experiences of other countries that succeeded in getting rid of the problem of inflation taking into account the special economic circumstances and possibilities of Iraq, in order to reach success in Efforts to get rid of a problem
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