BSc BA ADP FSc ICS FA ICom English Essay Inflation / Rising Prices With Outline & Quotations Essay Notes Online Taleem Ilmi Hub
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1. Introduction
- Different definitions of inflation
- It has become the problem of every country
2. Causes of inflation
- Natural calamities
- War is also a curse of inflation
3. Some other curses of Rising Prices
- Devalue of currency
- International circumstances
4. How to control the rise in prices
- Export should be increased and import should be decreased
- Some other policies should be planned
5. Conclusion
ESSAY:
In economics, inflation is described as a specific situation whereby the demand for goods and service exceeds to the available supply. Inflation can also be defined as "an abnormal increase in the quantity of purchasing power".
In every country there is a specific demand and supply within the country. There is a particular price fixed but sometime supply increases and demand decreases and certain time demand increases and supply decreases. In ordinary language, inflation means a general rise in prices. Inflation is the problem of whole of the world. It is a burning question now-a-days, and every country of the world is trying to control it.
There are many causes of inflation which can be discussed. Natural calamities are the main cause of inflation. If the products of a country are cheapened by floods or famine etc. its ultimate result is inflation and the prices will be increased. War is another important cause of inflation. The war always creates inflation in the economy of a country. Pakistan made progress by leaps and bounds before Indo-Pakistan war 1965. But after the war, the economy of Pakistan was badly affected and Indo-Pakistan war 1971 brought the worst set-back to the people of Pakistan. Government of Pakistan found no other way except to devalue its currency to rebuild the economy. International circumstances also affect the economy of a country. If the prices of some major items like petrol, oil or machines are increased, a country which imports these things will be compelled to increase the prices.
Now the question is how to control high prices. The answer is very easy but economists suggest different steps. Firstly, exports should be increased and imports should be decreased.
Secondly, the government should decrease the expenditures. Thirdly, the government should withdraw all subsidies. Fourthly, circulation of currency should be controlled. Fifthly, free foreign exchange policy should be controlled.
After taking all above mentioned steps, highly increasing prices can be controlled in the long run. The government should avoid further devaluation in currency.
"Inflation is a disease, a dangerous and sometimes fatal disease, a disease that it not checked in time, can destroy a society". (Milton Friedma)
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