經濟學Essay代寫范文：The Different Types Of Inflation
本文是經濟學專業的Essay代寫范文，題目是“The Different Types Of Inflation（不同類型的通貨膨脹）”，通貨膨脹指的是物價的上漲導致一個國家的購買力下降。通貨膨脹是一種正常的經濟發展，只要年度百分比保持在低水平;一旦這一比例超過預定水平，就被認為是通脹危機。
Inflation indicates to a rise in prices that causes the purchasing power of a nation to fall. Inflation is a normal economic development as long as the annual percentage remains low; once the percentage rises over a pre-determined level, it is considered an inflation crisis.
The term “inflation” once referred to increases in the money supply (monetary inflation); however, economic debates about the relationship between money supply and price levels have led to its primary use today in describing price inflation. Inflation can also be described as a decline in the real value of money-a loss of purchasing power in the medium of exchange which is also the monetary unit of account. When the general price level rises, each unit of currency buys fewer goods and services. A chief measure of general price-level inflation is the general inflation rate, which is the percentage change in a general price index, normally the Consumer Price Index, over time. Inflation can cause adverse effects on the economy. For example, uncertainty about future inflation may discourage investment and saving. High inflation may lead to shortages of goods if consumers begin hoarding out of concern that prices will increase in the future.
Low (as opposed to zero or negative) inflation may reduce the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reducing the risk that a liquidity trap prevents monetary policy from stabilizing the economy. The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control the size of the money supply through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.
Types of Inflation
Demand-pull
The most important inflation is called demand-pull or excess demand inflation. It occurs when the total demand for goods and services in an economy exceeds the supply available, so the prices for such goods and services rise in the economy.
Cost-push inflation成本推動的通貨膨脹
The name indicates the cause i.e. costs of production rise, for one reason or another, and forces up the prices of finished goods and services. Often a rise in wages in surplus of any gains in labor yield is what raises unit costs of production and thus raises prices. This is less common than demand-pull, but can occur independently as well as in combination with it.
名稱表明了原因，即生產成本上升，因為這樣或那樣的原因，并迫使制成品和服務的價格上漲。通常情況下，工資的上漲超出了勞動產出的收益，從而提高了單位生產成本，從而提高了價格。這種情況不像需求拉動那樣常見，但可以獨立發生，也可以與需求拉動結合發生。
Pricing power inflation
It occurs whenever businesses in general make a decision to boost their prices to boost their profit margins. This does not occur normally in recessions but when the economy is booming and sales are strong.
Causes of Inflation
There are many causes for inflation, depending on a number of factors.
Excess money printing
Inflation can happen when governments print an excess of money to deal with a crisis but don’t have resources at backed, usually governments are allowed to print only that amount of currency that is equal to gold available to that country. As a result, prices end up rising at an extremely elevated speed to keep up with the currency surplus. In which prices are forced upwards because of a high demand.
High Production Cost高生產成本
Another common cause of inflation is a rise in production costs, which leads to an increase in the price of the final product. For example, if raw materials increase in price, this leads to the cost of production increasing which in turn leads to the company increasing prices to maintain steady profits. Rising labor costs can also lead to inflation.
通貨膨脹的另一個常見原因是生產成本的上升，這導致最終產品價格的上漲。例如，如果原材料價格上漲，就會導致生產成本上升，而生產成本上升又會導致公司提高價格以保持穩定的利潤。不斷上漲的勞動力成本也會導致通貨膨脹。
International lending and national debts
Inflation can also be caused by international lending and national debts. As nations borrow money, they have to deal with interests, which in the end cause prices to rise as a way of keeping up with their debts.
Federal taxes聯邦稅
Inflation may be caused by federal taxes put on consumer products such as cigarettes or fuel. As the taxes rise, suppliers often pass on the burden to the consumer; however, once prices have increased, they rarely go back, even if the taxes are later reduced. For example a rise in the rate of excise duty on alcohol and cigarettes, an increase in fuel duties or perhaps a rise in the standard rate of Value Added Tax or an extension to the range of products to which VAT is applied. These taxes are levied on producers (suppliers) who, depending on the price elasticity of demand and supply for their products, can opt to pass on the burden of the tax onto consumers. For example, if the government was to choose to levy a new tax on aviation fuel, then this would contribute to a rise in cost-push inflation.
通貨膨脹可能是由對消費品如香煙或燃料征收的聯邦稅引起的。隨著稅收的增加，供應商通常會將負擔轉嫁給消費者;然而，一旦價格上漲，即使后來減稅，它們也很少回落。例如，提高煙酒消費稅稅率，提高燃油稅，或者可能提高增值稅的標準稅率，或者擴大適用增值稅的產品范圍。這些稅是對生產者(供應商)征收的，這些生產者(供應商)根據其產品的需求和供應的價格彈性，可以選擇將稅收負擔轉嫁給消費者。例如，如果政府選擇對航空燃油征收新稅，那么這將導致成本推動型通脹的上升。
Effects of Inflation
Most effects of inflation are negative, and can hurt individuals and companies alike, below is a list of negative and “positive” effects of inflation.
Negative Effects
Hoarding
People will try to get rid of cash before it is devalued, by hoarding food and other commodities creating shortages of the hoarded objects.
Increased risk – Higher uncertainties:
Uncertainties in business always exist, but with inflation risks are very high, because of the flux of prices.
Fixed income recipients will be hurt:
Because while inflation increases, their income doesn’t increase, and therefore their income will have less value over time.
Lowers national saving:
When there is a high inflation, saving money would mean watching your cash decrease in value day after day, so people tend to spend the cash on something else.
Existing creditors will be hurt:
Because the value of the money they will receive from their borrowers later will be lower than the money they gave before.
Distortion of relative prices:
Usually the prices of goods go higher, especially the prices of commodities.
Causes an increase in tax bracket
People will be taxed a higher percentage if their income increases following an inflation increase.
Causes business life cycles:
Many companies will have to go out of business because of the losses they incurred from inflation and its effects).
Positive Effects
It can benefit the inflators (those responsible for the inflation)
It can benefit early and first recipients of the inflated money (because the negative effects of inflation are not there yet).
It can benefit the cartels (it benefits big cartels, destroys small sellers, and can cause price control set by the cartels for their own benefits).
It might relatively benefit borrowers who will have to pay the same amount of money they borrowed (+ fixed interests), but the inflation could be higher than the interests; therefore they will be paying less money back. (example, you borrowed $1000 in 2008 with a 5% fixed interest rate and you paid it back in full in 2010, let’s assume the inflation rate for 2005, 2006 and 2007 has been 13%, and borrower was charged 5% of interests, but in actual borrower earning 8% of interests, because 13% (inflation rate) – 5% (interests) = 8% profit, which means you have paid only around 65- 70% of the real value in the 3 years.
The first three effects are only positive to a few elite, and therefore might not be considered positive by the general public.
Surviving in inflation幸存的通貨膨脹
Be wise when holding cash, whether in your home or in your savings account, if you’re earning 5% interest on the money you have in your bank, and inflation rate is 10% then you’re in reality losing 5% and not earning anything.
在持有現金時，不管是在家里還是在儲蓄賬戶上，都要明智一些。如果你銀行存款的利息是5%，通貨膨脹率是10%，那么你實際上是損失了5%，分文不賺。
Be vigilant when buying bonds, high inflation rates completely destroy the value of long-term bonds.
Invest in durable goods or commodities rather than in money. Invest in things that going to be used anyway and will serve for a long time.
Invest for long-term capital gains, because short term investments tend to give misleading results or sense of making profits while in reality its resulting in loss.
Manage wisely recurring monthly bills such as (phone bills, cable TV…), it would help to reduce them or eliminate some of them.
Ask yourself, do I really need these things I’m spending my money on? Think how much and how often you will need something before buying it.
Use the money saving tips such as: you need to reduce your consumption of things that are rising rapidly in price (e.g, gas) without having to reduce your consumption of goods that are rising less rapidly or even falling in price (eg, clothes).
Buy only what is need, especially objects that have multi-tasks, and are considered durable goods.
Causes of Inflation In Pakistan
Several supply and demand factors could be responsible for this surge in inflation.
Supply-side shocks供給沖擊
If occurs can cause large fluctuations in food and oil prices, which impacts over all inflation, at times, can be so extreme that these cannot be countered through demand management, including monetary policy.
如果發生這種情況，可能會導致食品和石油價格大幅波動，有時會對所有通脹產生影響，這種波動可能非常嚴重，以至于無法通過包括貨幣政策在內的需求管理來應對。
Increased domestic demand
Increased domestic demand can create an output gap, putting upward pressure on prices. Growth in private consumption on the average remained over 10 % between fiscal year 2004 and 2006, depicting signs of demand side pressures on price level. The relationship between growth and inflation depends on the state of the economy. High growth, without an increase in inflation, is possible if the productive capacity or potential output of the economy is growing enough to keep pace with demand. A prolonged phase of rising inflation in such a case can have severe consequences for the economy.
Rising trade deficit不斷上升的貿易逆差
The prospect effect is very important since there is a danger that the current high rate of inflation can get locked into expectations of inflation. People expect higher salaries to compensate for intended increase in prices, speculation in asset prices increases, credit meant for manufacturing sector diverts to real estate and stock markets, and hoarders, profit and rent seekers become active in expectation of high price in the future. All this can have devastating effect for the prices.
前景效應非常重要，因為目前的高通脹率有可能陷入通脹預期。人們期待更高的工資來補償預期的價格上漲，資產價格上漲的投機，制造業的信貸轉向房地產和股票市場，囤積者、利潤和尋租者在未來的高價預期中變得活躍。所有這些都可能對價格產生毀滅性的影響。
Fiscal policy remained expansionary
Fiscal policy has remained expansionary in the last few years. Expansionary fiscal policy fuels domestic demand and puts pressure on the current account deficit. It widens the investment-saving gap, which has to be financed externally. Financing of fiscal deficit through money creation adds to inflationary pressures. Increased government borrowing from central bank can have serious consequences for general price level.
Expansionary monetary policy
The expansionary monetary policy- high growth in money supply and loose credit policy- was believed to be contributing to high inflation. Although expansion of credit is usual in expanding economies, excessive credit growth can have adverse effects on real variables.
Increase in import prices
Increasing import prices are also considered an important factor for inflation. Exchange rate, if depreciating can also put upward pressure on price level. Increase in prices of goods, such as petrol, raw material etc makes our imports costlier, impacting on cost of production.
Indirect taxes間接稅
Indirect taxes are also blamed as the main cause of inflation. The indirect taxes, such as sales tax and excise duties raise the prices of consumer goods. This creates inflationary pressure. contarary, direct taxes reduce the take-home income and have anti-inflationary effect. A substantial increase in support price of wheat is estimated to have an inflationary effect on consumer prices, particularly food prices. This effect is due to the fact that wheat and wheat-related products account for 5.1 per cent of the CPI basket.
間接稅也被認為是通貨膨脹的主要原因。間接稅，如銷售稅和消費稅，提高了消費品的價格。這就產生了通脹壓力。相反，直接稅減少了實際收入，并具有反通脹作用。據估計，小麥支撐價格的大幅上漲將對消費者價格，特別是食品價格產生通脹影響。這種影響是由于小麥和小麥相關產品占CPI籃子的5.1%。
Measuring Inflation
Four different price indices are used in Pakistan over the course of fiscal year, namely: the Consumer Price Index (CPI), the Wholesale Price Index (WPI), the Sensitive Price Index (SPI) and the GDP deflator. The CPI is the main measure of price changes at the retail level. It covers the retail prices of 374 items in 35 major cities and reflects roughly the changes in the cost of living of urban areas. The WPI is designed for those items which are of day to day use on the primary and secondary level; these prices are collected from wholesale markets as well as from manufacturers. The WPI covers the wholesale price of 106 commodities prevailing in 18 major cities of Pakistan. The SPI shows the weekly change of price of 53 selected items of daily use consumed by those households The SPI is based on the prices prevailing in 17+ major cities and is computed for the basket of commodities being consumed by the households belonging to all income groups combined. In Pakistan, the main focus is placed on the CPI as a measure of inflation as it represents more with a wider coverage of more than 374 items in 71 markets of 35 cities around the country. As such, the change in CPI becomes an indicator of the inflation that affects all of us. WPI indicates the change in wholesale prices which affects businesses and industries. And SPI that covers a limited number of essential items of daily use including food and fuel can be termed as the inflation for the poor.
CPI Analysis from 2008 to 2012
In March 2012 inflation rate in Pakistan was reported to be 10.8%. From 2003 until 2010, the average inflation rate in Pakistan was 10.15 percent reaching an all time height of 25.33 percent in August of 2008 and a record low of 1.41 percent in July of 2003.
Controling Inflation
To reduce our Government Luxury Expenses both Federal and Provincial.
To reassess the complete system of Direct and Indirect Taxes.
To increase the Production of Food, Industry and Service things.
Take benefit to public in shape of (Oil & Petrol is low than reduce the prices)
Reduce Unemployment
Increase in Agriculture, industry
Monopoly Control System should be work accurately
SBP should take major steps to control inflation
Conclusion
Inflation impacts the multiple sectors of the economy (impact on the distribution of income and wealth, impact on production, impact on the Government, impact on the Balance of Payment, impact on Monetary Policy, impact on Social Sector, impact on Political environment) and different classes of the people (Debtors & Creditors, Salaried Class, Wages earners, Fixed income group, Investors and shareholders, Businessmen, Agriculturists).
A reasonable rate of inflation of around 3- 6 per cent is often viewed to have positive effects on the national economy as it encourages investment and production and allows growth in wages. When inflation crosses reasonable limits, it has negative effects. It reduces the value of money, resulting in uncertainty of the value of gains and losses of borrowers, lenders, and buyers and sellers. The increasing uncertainty discourages saving and investment. Not only can high inflation grind down the gains from growth, it also makes the poor worse off and widens the gap between the rich and the poor. If much of the inflation comes from increase in food prices, it hurts poor more since over half of family budget of the low wage earners goes for food. Second, it redistributes income from fixed income earners (for instance pensioners) to owners of assets and earners of large and variable income, such as profits.
For Pakistan’s economy, inflation can be bad if it crosses the threshold of six per cent, and can be extremely harmful if it crosses the double digit level. Several supply and demand factors could be responsible for this surge in inflation. Supply-side shocks can cause large fluctuations in food and oil prices, effects of which on overall inflation, at times, can be so excessive that these cannot be countered through demand management.
對巴基斯坦經濟來說，如果通脹超過6%的門檻，就會很糟糕;如果通脹超過兩位數，就會極其有害。幾個供求因素可能是導致通脹飆升的原因。供應方面的沖擊可能導致食品和石油價格大幅波動，對整體通貨膨脹的影響有時可能過大，以至于無法通過需求管理加以應對。
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