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.
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