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What would have been better for a country inflation or deflation?  

INFLATION

It is the thing that one literally do not want to have in its country .Tragically inflation leads a very tremendous role in devaluating money and have  same role in rising  price levels of goods.

Inflation or deflation is a basic way to know about the countries economy condition and as such it influences country towards their growth.




Any way to tackle INFLATION:

Yes, for the revenue defecit countries inflation can not be controlled but only way to balance the inflation is to fix deposit the saving bands we do so that the interests through it could balance such inflations.



Lets understand this with an example:

Suppose a person name A have a cash of rupees 100 and he kept that cash in his purse for around ten years but evidently he did not have any advantage of it. since with that hundred rupees he would have bought  something but after ten years the thing bought by him could not be bought again by him.But just think if he have put that 100 rupees in bank after ten yeas the interest that he will get for such rupees would have letted him to buy such thing.

This is the way through which FISCAL DEFICITcountries deals with inflation.


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Deflation

It is the thing which do not devaluates money but inspite apreciates its value.It plays very good role in decreasing prices of goods.

So the countries  followed by deflation should be satisfied unlike inflated countries.


No the deflated countries are also not satisfied and the authorities of such countries also have to face certain challenges.



What vital challenges such countries have to face?

Countries following deflation have challenges in the sense of maintaining GDP

There are certain types of theories which citizens of deflated countries assume in the sense of buying products.They knew that prices of goods will more decrease with respect to time so they keeps on waiting for prices to drop more.As a result GDP defines as final goods produced in one financial year and with the view of gdp less things are bought and as a result GDP falls down which impacts country massively.


Lets understand with example:

Suppose one wanted to buy a television set and he knews that prices gone to be drop within few months and like him there are various such people who use to have same sensibility .So this type of things would result in lesser production of sets and impact countries GDP.




It is not that inflated countries faces challenges deflated countries too have to face certain challenges .