The definition of inflation:
It continues to rise in the general level of prices for a long time, noting that contains the following: -
1 - a rise in the general level of prices.
2 - continue to rise in the general level of prices for a period of Toalhohma means that the jump in prices is not called Tdmkhma.
Reasons for inflation: -
1 - inflation caused by the increase in demand (and inflation is called demand)
Be at its peak at a full run of production elements and if the increase in the amount of (money supply) in the community Vtsahbh there are a lot of money chasing few goods. Could we know why the increase in the depth of the market.
2 - inflation caused by the increase in costs and so-called cost inflation
3 - imported inflation
The effects of inflation: -
Usually leads to a decrease in the value of money, any decrease in the purchasing power of money. There is no inverse relationship between inflation and the value of money between any purchasing power of money
More affected by inflation are the owners of fixed income and money changing, but the owners benefit because the profits go up in the case of simple inflation
As inflation benefits debtors and harms the creditor assuming someone borrowed from a person the amount of (50) thousand riyals for the debtor to pay the loan value, a (50) thousand riyals does not increase nor decrease, but the creditor when you receive a loan value of (50) thousand when the loan was bought by the most luxurious types of cars, now that's holding does not buy the minimum of Alonetat.
This applies to owners of savings from every Darhmh in the siphon at the time of inflation do not buy him a piece of land where his son's bike stands Cycle. (Talo Drihamkm Heban O)
Treatment of inflation: -
Different treatment of inflation for different causes in the case of inflation resulting from increased demand for goods and services, a common type in most cases of inflation used in the State so-called fiscal policy are government spending and taxes as required to reduce aggregate demand to equal to the aggregate supply of goods and services, the State cut spending the government or the tax or increase the current tax, and the state can be used as one of the two methods, or both, when reducing government spending in the budget is cut total spending in the society and if accompanied by a tax increase, the impact of the tax falls on individuals, where the Government withdraws them part of the money in the hands of individuals decreases demand for goods and services decreases aggregate demand, and can also reduce the amount of state money supply in the economy by raising the legal reserve ratio, which reduces liquidity in the hands of individuals, banks and institutions.
Economic recession
Definition of economic recession the case of passing the national economy is suffering a decline in aggregate demand (consumer spending and private Alanakkak Governmental consumer and investment and external demand), leading to accumulation of goods in the stores of the company and depressed the market in spite of lower prices, and the resulting deterioration in the rate of growth Economic and widespread unemployment.
Causes:
Occurs due to Gr aggregate demand for goods and services offered in the market, exerting downward pressure on prices, but that the decline in prices encourage buyers to purchase Vtaatkds goods in the stores and continue this case a list as long as there is a gap between aggregate demand for goods and services and the aggregate supply of them.
Effects:
With the low general level of prices in case of recession rising real value of money, because it is an inverse relationship between the change in prices and the change in the value of money ie the purchasing power of money, as has been noted that the owners of savings at the time of inflation, which do not buy him a piece of land stands in his son's bicycle Cycle buy it km in the Clio. Heh, but without an instrument.
It should be noted here that the recession should be the treatment community in the event to occur as soon as possible but to avoid that to happen because it causes major damage to the national economy.
Treatment:
As the cause of the recession lies in the lack of aggregate demand to buy goods, it must move this application to achieve a balance between supply and demand, and this is done using the following methods: -
1 - increased government spending in the budget. Happened in the last budget of the state.
2 - lower taxes. It should be noted to reduce the prices of fuel was pre-emptive signals.
3 - increase the amount of money: as an increase in the amount of money, increasing liquidity in the community goes up aggregate demand.
It should be noted that the state can use the policies referred to above (increased government spending and reduce taxes and increase the amount of money), either collectively or individually as needed, provided the work on the coordination and orderly manner so as not to cause the excessive use of these policies to turn recession into case of inflation.
It is worth mentioning here the monitoring of inflation, which passed to the Kingdom of Saudi Arabia
Saudi Arabia came to two of the inflation: -
First case:
In the period of 1375-1377 e 1955-1957 AD
Grew up inflation in this period because of the large expansion in government spending with the stability of a sudden in oil revenues which led to a severe disability in the general budget of the State, they have taken urgent measures to establish a program of financial reform, which focused on removing the cause of inflation is to increase the expenditures for the revenue.
Second case:
In the period of 1395-1398 e
Occurred inflation, the second in the period between 1395-1398 e due to higher oil revenues, which led to increase the income of the state also led to increase the incomes of individuals rose to the impact of government spending also increased spending of individuals on goods and services Vtm use of import from abroad run afoul obstacles was the lack of ports, communication and appropriate ways in addition to the large and experienced in the same period a wave of great inflation, appeared to have both types of inflation: inflation, internal "demand inflation" and inflation outside "imported inflation"
Inflation, III: 1427-1428 e 2006-2007 AD
Inflation and excessive stocks, we have inflation of both types appeared to inflation and demand inflation ignorance and awareness of investment in the vast majority of traders
In terms of controlling inflation propagated and thankfully started to address the signals after increased government spending, coining money, and will be returned to the facilities have been used once again the use of standardized, Galia appeared to me to cover the underwriting entity.
With the stability of oil prices and global warming, which witnessed the universe claimed the demand for oil because the European schedule summer of Kars are forced to use air conditioners and need an increase in the production of electrical energy, which means an increase on oil supports this view of the expected arrival of a barrel (120), Do not have a mind Hahaha analysis and pickling.
The inflation of ignorance and awareness of the investment is definitely not promising many analysts, forums, and this something is a positive force, even if the consensus among analysts, we are now in the detachment of the top industry analysts, God willing. Is the correction we have a way Dz prices and concepts, let's start a boom to come we are in the Throes accompany the boom Economic cities a resolution of industrial cities.
It continues to rise in the general level of prices for a long time, noting that contains the following: -
1 - a rise in the general level of prices.
2 - continue to rise in the general level of prices for a period of Toalhohma means that the jump in prices is not called Tdmkhma.
Reasons for inflation: -
1 - inflation caused by the increase in demand (and inflation is called demand)
Be at its peak at a full run of production elements and if the increase in the amount of (money supply) in the community Vtsahbh there are a lot of money chasing few goods. Could we know why the increase in the depth of the market.
2 - inflation caused by the increase in costs and so-called cost inflation
3 - imported inflation
The effects of inflation: -
Usually leads to a decrease in the value of money, any decrease in the purchasing power of money. There is no inverse relationship between inflation and the value of money between any purchasing power of money
More affected by inflation are the owners of fixed income and money changing, but the owners benefit because the profits go up in the case of simple inflation
As inflation benefits debtors and harms the creditor assuming someone borrowed from a person the amount of (50) thousand riyals for the debtor to pay the loan value, a (50) thousand riyals does not increase nor decrease, but the creditor when you receive a loan value of (50) thousand when the loan was bought by the most luxurious types of cars, now that's holding does not buy the minimum of Alonetat.
This applies to owners of savings from every Darhmh in the siphon at the time of inflation do not buy him a piece of land where his son's bike stands Cycle. (Talo Drihamkm Heban O)
Treatment of inflation: -
Different treatment of inflation for different causes in the case of inflation resulting from increased demand for goods and services, a common type in most cases of inflation used in the State so-called fiscal policy are government spending and taxes as required to reduce aggregate demand to equal to the aggregate supply of goods and services, the State cut spending the government or the tax or increase the current tax, and the state can be used as one of the two methods, or both, when reducing government spending in the budget is cut total spending in the society and if accompanied by a tax increase, the impact of the tax falls on individuals, where the Government withdraws them part of the money in the hands of individuals decreases demand for goods and services decreases aggregate demand, and can also reduce the amount of state money supply in the economy by raising the legal reserve ratio, which reduces liquidity in the hands of individuals, banks and institutions.
Economic recession
Definition of economic recession the case of passing the national economy is suffering a decline in aggregate demand (consumer spending and private Alanakkak Governmental consumer and investment and external demand), leading to accumulation of goods in the stores of the company and depressed the market in spite of lower prices, and the resulting deterioration in the rate of growth Economic and widespread unemployment.
Causes:
Occurs due to Gr aggregate demand for goods and services offered in the market, exerting downward pressure on prices, but that the decline in prices encourage buyers to purchase Vtaatkds goods in the stores and continue this case a list as long as there is a gap between aggregate demand for goods and services and the aggregate supply of them.
Effects:
With the low general level of prices in case of recession rising real value of money, because it is an inverse relationship between the change in prices and the change in the value of money ie the purchasing power of money, as has been noted that the owners of savings at the time of inflation, which do not buy him a piece of land stands in his son's bicycle Cycle buy it km in the Clio. Heh, but without an instrument.
It should be noted here that the recession should be the treatment community in the event to occur as soon as possible but to avoid that to happen because it causes major damage to the national economy.
Treatment:
As the cause of the recession lies in the lack of aggregate demand to buy goods, it must move this application to achieve a balance between supply and demand, and this is done using the following methods: -
1 - increased government spending in the budget. Happened in the last budget of the state.
2 - lower taxes. It should be noted to reduce the prices of fuel was pre-emptive signals.
3 - increase the amount of money: as an increase in the amount of money, increasing liquidity in the community goes up aggregate demand.
It should be noted that the state can use the policies referred to above (increased government spending and reduce taxes and increase the amount of money), either collectively or individually as needed, provided the work on the coordination and orderly manner so as not to cause the excessive use of these policies to turn recession into case of inflation.
It is worth mentioning here the monitoring of inflation, which passed to the Kingdom of Saudi Arabia
Saudi Arabia came to two of the inflation: -
First case:
In the period of 1375-1377 e 1955-1957 AD
Grew up inflation in this period because of the large expansion in government spending with the stability of a sudden in oil revenues which led to a severe disability in the general budget of the State, they have taken urgent measures to establish a program of financial reform, which focused on removing the cause of inflation is to increase the expenditures for the revenue.
Second case:
In the period of 1395-1398 e
Occurred inflation, the second in the period between 1395-1398 e due to higher oil revenues, which led to increase the income of the state also led to increase the incomes of individuals rose to the impact of government spending also increased spending of individuals on goods and services Vtm use of import from abroad run afoul obstacles was the lack of ports, communication and appropriate ways in addition to the large and experienced in the same period a wave of great inflation, appeared to have both types of inflation: inflation, internal "demand inflation" and inflation outside "imported inflation"
Inflation, III: 1427-1428 e 2006-2007 AD
Inflation and excessive stocks, we have inflation of both types appeared to inflation and demand inflation ignorance and awareness of investment in the vast majority of traders
In terms of controlling inflation propagated and thankfully started to address the signals after increased government spending, coining money, and will be returned to the facilities have been used once again the use of standardized, Galia appeared to me to cover the underwriting entity.
With the stability of oil prices and global warming, which witnessed the universe claimed the demand for oil because the European schedule summer of Kars are forced to use air conditioners and need an increase in the production of electrical energy, which means an increase on oil supports this view of the expected arrival of a barrel (120), Do not have a mind Hahaha analysis and pickling.
The inflation of ignorance and awareness of the investment is definitely not promising many analysts, forums, and this something is a positive force, even if the consensus among analysts, we are now in the detachment of the top industry analysts, God willing. Is the correction we have a way Dz prices and concepts, let's start a boom to come we are in the Throes accompany the boom Economic cities a resolution of industrial cities.
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