Inflation: Control It From The Consumer Point

Inflation: Control it from the consumer point

Introduction

This essay is to make known about inflation, making consumers learn some inflation and how to control it, also give our point of view, as a consumer. In the first place it is a process of imbalance between demand and supply, this effect causes a rise in the prices of most products and services and a loss of money to use them.Inflation occurs when the value of the currency decreases.

Developing

Makes the currency that circulates above the real demand that exists. When there is a government deficit, it resorts to indebtedness by issuing currency. The control is the central bank, since he gives a value of the currency and the others must do it the same. This can stimulate the money supply and thus help in production;In spite of that, if supply and demand do not grow, inflation is generated. Demand inflation.

It does not have the same ability to increase at the same rate with which goods grow, that is, an inflation pressure is also created, there is also cost inflation. This action causes an increase due to its production as well as raw material, services and others, on the otherPart The structural inflation is what is a productive country can give an increase in prices. A threat can be given to the rest of the economy, finally inflation by inertia.

This is that inflation endures more time. There are several types of inflation, among them is the deflation that is the opposite of inflation, at first glance it can show being a good business, but on the contrary it is not, since people stop consuming waiting for a good price.

There is also the stagflation that is a combination of economic effects, since it has an inflation and recession. On the other hand we have hyperinflation is very important.

Since it can make it lose the purchasing power and depreciation of the currency, after inflation it reaches 1000% levels. Then there is disinflation This effect reduces the speed with which inflation is raising, implying that prices do not decrease, there is the underlying inflation that consists of not taking into account the prices of the products, therefore thatNor of unprocessed foods, it is made with the intention of measuring inflation without fluctuations.

conclusion

I think it is also convenient to mention galloping inflation, this can be possible to double products prices for a year. In conclusion of the text I will tell you why it is importantWith low prices they are easier to implement the correct economic measures.