[Sokrata Kafejo] 2010-9-7 Topic: Inflation

[Chigo Esperisto]

Inflation

 

1. What is inflation?

 

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.

 

This definition is from a professional website.Some people view inflation as "depreciation", which means each unit of currency buys fewer goods and services than before.In your opinion,exactly what is inflation?

 

2. What are the pros an cons of inflation?

 

As many other economic phenomena do,inflation's effects also can be simultaneously positive and negative.Besides the negative effects such as decrease of real value of money that most people have experienced,could you find the positive effects of inflation?

 

3. What caused inflation?

 

There are many factors which can influence the level of inflation.Like oversupply of money ,increases in demand,wage,interest rate,unemployment,and many others...all of these contribute to the occurence of inflation,so inflation is a very complicated process.

 

To explain it,economists formulated their own theories. The most famous schools include Keynesian view,Monetarist view,Rational expectations theory,Austrian view..etc. Each of these theories is supported by its own mathematical model.Because of the limitation of size of the article,I omited the introduction of the theories here.It's up to YOU, whether you have some professional economic 
knowledge or not,to give us your idea of cause of inflation.Is that reasonable? :--)

 

4. Official perspective: How to control inflation effectively?

 

Let's design a scene: You, a economist from the most critical department in government, are expounding your point of view in front of TV audiences. Below is your statement....

.....

In your pocket,there's a note pad on which some key words have been written down....

 

Monetary policy 
Fixed exchange rates 
Gold standard
Wage and price controls 
Cost-of-living allowance

....

 

5. Individual perspective: How should we do?

 

This one is..completely your business....

 

--
Ĉigo Esperisto (ZHOU Qi)
Konstanta Estrarano
Sichuan-a Esperanto-Asocio
sea.nialingvo.com