Monday, April 1, 2013

About Inflation and Deflation

1. Inflation is a condition where price of thing generally increases continously or happened decreases domestic currency.
2. Deflation
Deflation is a period where generally still fall down and domestic currency still increases. Deflation is result for inflation just if inflation happened because the amount or money in the community in a bit. Allow to avoid deflation is by decreases interest rate.
Hyperinflation
Hyperinflation in economy is a very high ivdlation . A condition where price up so fast and domestic currency fall.down drastically. In formality hyperinflation is happened if inflation rate more than 50 % in amonth. As a rule of thumb a beutiful town , inflation is usually reported one a year. But in hyper condition inflation rate is reported  in shorter interval, usually once a month. Hyperinflation usually appears when  there is increasing inventory of money drastically. Hyperinflation is usually is connected with war, economic depreciation, and simmering politic or social in a state.
4. Devaluation
Devaluation is rule which is issued by goverment to decrease value of money toforeign currency. The goal is to increase export total and limiting the amount of imports and foreign exchange.
5. Revaluation is rule which is issued by goverment to increase domestic currency to the foreign currency.
6. Dereciation
Depreciation isa process of increase domesti currency which is caused there is a trading mechanism.
7. Sanering
Sanering is a rule is issued by government  to decrease amount of money circulating in community by  deducting the money. This step is done if variety ways to keep currency stabilitation unsuccesfully.

No comments:

Post a Comment