(vi) It creates money illusion and results in artificial prosperity which is short-lived. ADVERTISEMENTS : (vii) It reduces the value of money and thus erodes real saving of the people. (viii) When the government adopts the inflationary. It takes away wealth from some groups of the society and transfers it to others arbitrarily, ignoring the maxim of equity. (v) It is socially demoralising. It encourages the spirit of gambling. It promotes speculative activities and. (iv) Mild inflation is better than deflation from the point of view of economic development. Moderate monetary expansion by raising the price level and increasing the expenditures, can stimulate economic development in a depressed economy. (v) Inflation. Thus, inflation is preferred to deflation because the former is lesser of the two evils. In the words of Keynes, Inflation is unjust and deflation in inexpedient. Of the two deflations is worse. ADVERTISEMENTS : Inflation in. It curtails economic activity, causes mass unemployment, generates poverty and ultimately results in the complete ruin of the economy. Inflation is Better than Deflation Though both inflation and deflation have undesirable effects, but inflation is considered better. (iv) Deflation, once starts, becomes cumulative. It goes on gathering momentum and the economic crisis becomes deeper and deeper with the passage of time. ADVERTISEMENTS : (v) Deflation is undesirable from all sides. It adversely affects the. (ii) Deflation results in mass unemployment. Reduction in prices and profits forces the businessmen to close down their establishments or reduce their production, thus giving rise to large-scale unemployment. (iii) Deflation leads to depression in the economy.
(ii) Inflation increases economic inequalities through its redistributive effect. It transfers purchasing power from poorer to the richer sections of the society and thus widens the gap between the rich and the poor. ADVERTISEMENTS : (iii) Inflation.
Deflation is a double evil because it essays for master not only redistributes wealth in the write a business proposal sample same arbitrary manner, though in favour of the poor people, but also, reduces output and causes unemployment (b) Inflation makes it increasingly difficult for. It adversely affects those who are already weak and cannot protect themselves. It specially hits the middle classes who suffer most during inflation. (iv) Inflation affects different people differently and in different degrees and thus alters the.
Easy and simple essay on inflation - Expository essay tattoos piercings Easy and simple essay on inflation ADVERTISEMENTS : Which of the two is better: inflation or deflation? Inflation is a phenomenon of rising prices without causing change in the levels of employment and output. Deflation, on the other hand, is a phenomenon of. Do my report. Both inflation and deflation are harmful for society and have undesirable economic consequences. But when the question of a choice between the two evils of inflation and deflation arises, the lesser evil is to be selected. Inflation. (iii) It is easy to control inflation by adopting various monetary and fiscal measures, but it is very difficult to recover the economy from deflation. Once deflation starts, it gathers momentum and the cumulative downward process ultimately.
Easy and simple essay on inflation - Do homework the sims Deflation is Inexpedient Deflation, is considered inexpedient because of the following reasons : ADVERTISEMENTS : (i) Deflation, by reducing prices and output, leads to a sharp decline in the national income and thus reverses the process of. Resume Templates - Chosee Great Resumes and CV fo Resume Templates - Chosee Great Resumes and CV fo. Buy Top-Notch Already Written Essays Online at. My favourite bird parrot essay in tamil - google docsSle essay of my favorite book in hindi. essay on my pet parrot in hindi. essay if i was a bird in a cage. the parrot essay english. Best Essay Writing Service Reviews
Easy and simple essay on inflation
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