Inflation in Pakistan 2001 to 2010
Inflation in Pakistan 2001 to 2010
Abstracts
Generally, Inflation is known to be the rise in the general price level of goods and services. Inflation is at its peak all over the world and there are different reasons for it. In the case of an Asian country, Pakistan inflation is the result of monetary phenomena. The excess money supply growth in Pakistan has basically enhanced inflation. There are also many other reasons for the inflation to be high, such as, international increase in the commodity prices, external shocks, worsening of exchange rates and exhaustion of natural resources all have contributed significantly in enhancing the inflation.
Introduction
Pakistan has undergone a significant change in economic growth during the last few years, but the core problem of the economy is still unsolved. Inflation still continues to be the biggest of among all these.
Inflation is one of the most dangerous elements which have grasped the Pakistan till now. As we are in the Globalization world the Inflation is also increasing day by day in Pakistan. as compared to decade of 90,s when inflation averaged around 10% therefore any increase beyond 4 percent would make people a bit nervous. These are due to wrong economical policy, wrong governance, irresponsible political people who even don’t know the meaning of Politics. And the world Economical recession has also hit a Pakistan due to Inflation, Unemployment.
Historical Background
During the 1970s, the period of great structural changes and uncertainty, the role of inflation expectations was quite evident. People consider expected inflation while making their optimisation decisions.
The 1980s were a decade of relatively low average inflation (7.2 per cent). Private sector borrowing, exchange rate depreciation and adaptive expectations were the main factors behind this growth in consumer prices. De-nationalization enlarged the private sector and, as a consequence, private sector borrowing
Abstracts
Generally, Inflation is known to be the rise in the general price level of goods and services. Inflation is at its peak all over the world and there are different reasons for it. In the case of an Asian country, Pakistan inflation is the result of monetary phenomena. The excess money supply growth in Pakistan has basically enhanced inflation. There are also many other reasons for the inflation to be high, such as, international increase in the commodity prices, external shocks, worsening of exchange rates and exhaustion of natural resources all have contributed significantly in enhancing the inflation.
Introduction
Pakistan has undergone a significant change in economic growth during the last few years, but the core problem of the economy is still unsolved. Inflation still continues to be the biggest of among all these.
Inflation is one of the most dangerous elements which have grasped the Pakistan till now. As we are in the Globalization world the Inflation is also increasing day by day in Pakistan. as compared to decade of 90,s when inflation averaged around 10% therefore any increase beyond 4 percent would make people a bit nervous. These are due to wrong economical policy, wrong governance, irresponsible political people who even don’t know the meaning of Politics. And the world Economical recession has also hit a Pakistan due to Inflation, Unemployment.
Historical Background
During the 1970s, the period of great structural changes and uncertainty, the role of inflation expectations was quite evident. People consider expected inflation while making their optimisation decisions.
The 1980s were a decade of relatively low average inflation (7.2 per cent). Private sector borrowing, exchange rate depreciation and adaptive expectations were the main factors behind this growth in consumer prices. De-nationalization enlarged the private sector and, as a consequence, private sector borrowing