INFLATION. imapct on study 5how case thav

Inflation analysis on study thqt

1. Presentation By Aditya Valand

2. Inflation is a rise in prices , which can be translated as the decline of purchasing power over time .

3. Think about how much it cost to 1 liter Milk in the 2010s. Now think of how much it costs today. That price level increase is inflation.

4. 4 main reasone for I NFLATION ECONOMIC BOOM INCREASE IN PRICES OF RAW MATERIALS INCREASE IN EMPLOYEE SALARIES CURRENCY DEPRECIATION

5. REASON NO.1 : ECONOMIC BOOM Exampale

6. REASON NO.2: INCREASE IN PRICES OF RAW MATERIALS :

7. REASON NO.3 INCREASE IN EMPLOYEE SALARIES : LOW UNEMPLOYMENT HARDER TO REPLACE EMPLOYEES EMPLOYEE SALARIES GO UP INFLATION

8. REASON NO.4: CURRENCY DEPRECIATION 4. HYPER INFLATION

9. EXAMPLEOF HYPERINFLATION : Hyperinflation in Zimbabwe  2008  Hyperinflation in Venezuela 2014 Zimbabwe faced 231 million per cent peak hyperinflation in 2008. The Central Bank of Venezuela (BCV) officially estimates that the inflation rate increased to 50,000,000%+ between 2016 and 2019

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11. WHAT IF THERE WAS 0% INFLATION? : REDUCED SPENDING BUSINESSES START MAKING LOSSES UNEMPLOYMENT

12. The phillip’s curve LOW INFLATION = HIGH UNEMPLOYMENT HIGH INFLATION = LOW UNEMPLOYMENT

13. WHAT IS BEST LEVEL OF INFLATION: 4% (2 -6 %) 2%

14. HOW CAN GOVERNMENTS CONTROL INFLATION: