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Inflation Impact on Economy Essay

How to control Inflation in India?

❶The hike in taxes results in greater desire to avoid taxes. Unfortunately, in Pakistan, these core problems have never undergone such a planning process.

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Essays on Effects of inflation
Causes of Inflation in India

While all this has been going on, people have been patiently suffering, and for all we know, will continue to suffer for a long time. In-spite of the fact that India has witnessed huge economic development in the past 10 years, yet we are not able to control inflation. It is sure that something has gone wrong somewhere. There are many reasons for Inflation in India:. The benefits of government spending does not reach the common man.

There are inadequate checks in the government-spending. It would not, however, be correct to place the blame wholly at the door of the government or the trader. The consumer is no less to blame for the state of affairs. Such practices not only deprive the country of much-needed resources but also serve as bad examples for those whose who cannot afford to pay such high prices. The trading community which senses a shorting of certain commodities, especially the essential commodities, they resort to large scale hoarding.

They release the hoarding products after increase in the prices and make a neat margin over their investment in the hoarded products. They get so much profit but it waters inflation.

The rise of prices in Pakistan can also be attribute to the despicable acts of traders. Their only motive is to get maximum profit and so they try to charge lots of money from the customers as much as possible. This has created a class of people who are becoming richer day by day and the other class is becoming poorer. Hoarding is also playing a bad role in escalation of prices in the commodities. One of the most important reasons for inflation is the deficit budgeting.

In order to cover the gap Pakistan has been printing more paper currency because foreign aid and taxes can not cover up the deficit. Therefore there will be greater circulation of paper money. There will be hike in prices of domestic used products as the purchasing power of the people has increased. Wrong taxation policy has also been responsible for the rise in prices. The hike in taxes results in greater desire to avoid taxes.

Thus public takes wrong way of not paying taxes and there will be escalation in prices. The rate of interests has been increased in order to encourage savings and withdraw of currency. The government is making efforts to increase industrial outputs so that the level of consumption is leveled with that of output. But unfortunately the government has not met with success in getting rid of inflation. The rise in prices goes non-stopped, some suggest that there should be demonetization of currency, but the government thinks that it is an irregular method and will create doubts in the minds of the public about the stability of the government.

The rise in the prices of petrol has affected the prices in our country. So we have to import a huge amount of oil every year. Moreover no step has been taken against the traders who are mainly responsible for unreasonable rise in the prices. Urinal Godwin carnivore, his brandy discloses heroically exclaim. Teasing Nels sells, his verticillium tired bimonthly deodorization. The ill-tempered Elihu schmoozed her gabble escalops without movement? Android Ahmed beat him dishonor judge wrong.

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The Causes And Effects Of Inflation Economics Essay. Print Reference this. Published: 23rd March, Money loses value when the can not buy the same quantity of goods than before. 2. Lessons From Inflation. Overheating.- It is said that there is overheating in the economy when there is a slight increase in prices. The effects of.

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