Increased Inflation

Increased inflation

Introduction

The general and continuous increase in the price increase of goods and services is determined as inflation, this is usually calculated as a variation of percentages of the IPC consumer price index that determines the averages of the averages of mass consumption items, to determine This should include the representative consumption basket, for this a survey is generally done to determine the price measure of the basic basket of each home. The basket used to determine inflation in each country varies between countries and determines the different consumption patterns in each of them,

Developing

Inflation originates from several negative effects on certain economic agents that occurred in each country (workers, rentists, savers, etc.) In such a way that the causes that caused such a negative effect in each country and try to face it in a better possible way must be determined. It is also convenient to note that it is not the same to highlight the inflationary causes or pressures and the mechanisms used by the administration or economy and bond departments, the propagation without being the cause of inflation, they misunderstand it, because the propagation mechanisms are more visible and real.

Inflation can be determined as basic or structural, circumstantial and cumulative, these are induced by the inflationary process itself, inflationary pressures are subdivided into inflections, rigidities or structural limitations of the economic system of the economic system.

It should be clarified that certain parties or sectoral divisions are not suitable for filling the new levels that the demand reached either this consequence due to the immobility of productive resources or due to a certain behavior of the price system due to instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the instability by the of the governments on duty to face rigid expenses.

On the other hand, it is determined that the circumstantial inflationary pressures are those of an eventual nature, which are characterized by the progressive increase in the income of products or services, mass increases of public expenses, attending damage or catastrophes of a political nature. We know that the cumulative pressures are those caused by the inflation itself, among these are the distortions of the price system the bad vision of the investment by activities, as in the financial sectors such as the public and private sectors of goods and services, the evils prices controls and poor administration of economic expectations.

They have drastically raised the consumption present in the deterioration of the investment, with negative effects on productivity reduced by strikes that try to maintain the price of the basic basket, seeking the stability of salaries, such as removing tax on product income or Services and product output, resulting in high internal costs and thus greatly contributing to the deterioration of the country’s economy. The propagation mechanisms are those that once inflation is released generalize, set or reinforce it because of existing interactions, these are because of having a struggle of sectoral interests because of wages.

In other words, the allocation of resources, social groups, public or private sectors, which seek to somehow favor another sector at the expense of another missing social group, finally without obtaining a permanent benefit, propagation influences several public, private sectors , social to readjust their salary, entry or real expense, such as salaries with salaries and many benefits, private companies with the price increase and the public sector with the rise in nominal expenses nominal. Discomforts of supply and demand occur due to the discontinuous expansion of the price systems sectors.

Therefore, an increase in the tax money supply arises, an increase in the volume of monetary transactions in parallel with the increase in prices, so it is concluded that changes in the money supply is a mechanism of propagation From inflation, the structural imposition due to bonding in the extreme sector derives the factors that simultaneously operate the excessive increase in the income of products or services, which is caused by industrialization, urbanization, the decrease in income due to Product outputs due to a low increase in customer requests.

And a decrease in the terms of exchanges, these problems with taking the payment scale, which simultaneously leads to restricting the income of products or services and devaluations in the exchange rate, the two measures lead to generating an inflationary imposition of structural origin. According to the main theories of inflation, the acute inflation processes suffered in Latin America and the Caribbean especially in the 80s have taken the different delegates of the political economy, without dismeritting any government an investigation of the possible cause of inflation and to seek a solution for stabilization plans according to these interpretations.

This is why the different types of inflation that occurs in the different books on the economy among the different types of inflation, demand inflation, cost inflation, structural inflation, inertial inflation, inflation with stagnation are taken into account. The inflation of demand appears in great way in economy texts, finance, and has usually been studied for certain circumstances, studying the inflationary process in the economy of developed countries, this is commonly called "inflationary bump", it is fundamental in what is based on demand inflation.

conclusion

In the full occupation of the factors such as labor and capital, for this level the factors that in the economy produce the demand and the aggregate supply, the alleged fundamental in which it is taken into account in the Inflation of demand is the existence of production factors, labor and capital, due to this situation and some conflicts there is an increase in aggregate demand to the economy, private consumption, public spending, investments or exit of net products, There is no other mechanism to restore the economy as price increase to restore macroeconomic balance.