Overview on the Inflation

  Nowadays, inflation being a highly controversial topic, it is usually the case that country administrators spend a lot of time trying to solve it. Inflation, which is one of the important concepts in the field of economics, deals with all people in a society, it is obvious that it is very important to take action for a settlement after considering the situation clearly and carefully. In this study, inflation is examined and solution proposal is aimed.

  Inflation is a phenomenon that occurs when the over all level of prices increases steadily. What is important here is that pricestend to increase constantly. If prices are rising for a one-time period,it is not possible to talk about inflation. Inflation comes to two types in economies. First is Demand Inflation, second is cost Inflation. Demand inflation; economies alsoarise as a result of thein crease in demand for the products of the buyers, where there is no doubt that the increase in demand will come as a phenomenon that raises inflation. Cost inflation is; thein crease in thein put prices of the goods is reflected in the prices of the final goods. The inflation situatione merging in the countries depends on the set wofactors.

  Increasing and decreasing inflation leads to various economic situations. Inflation in countries with high inflation; high interest rate; high interest rate; decrease in investments, decrease in investments; increase in unemployment, increase in unemployment; decreasing demand, decreasing demand; decrease in the GNP and so on, leading to a deterioration in macroeconomic values in the economy and a deeply woundedon the country economy.

  Our country has been struggling with high inflation for many years and has been struggling with this problem for many years. With the economic policies implemented in the last 15 years, inflation has been reduced to single-dig it figures, but it can be seen that by 2017, inflation has gone from double digits  from single digits. When we make a case, wesee that this is duet ocost-based inflation. Main Goods - Intermediate Goods–Final Goods. Thein crease in the price of intermediate goods and the increase in exchange activity due to the fact that our economy is out sourced to procure intermediate goods from the final goods production process leads  to an increase in the general level of prices. This situation increases inflation and has negative effect on the economy

  The most fundamental element to see positive data in macroeconomic indicators will be achieved by spreading the production economy all over the country. If we look at inflation in particular, inflation under control by competitive domestic production, which can minimize the possible increases in the prices of thein put goods, will undoubtedly be the most important factor in ensuring that  the economy can see positive signals as well.