Inflation Is Destroying Economy And Businesses

[Good-Person]

I live in a country where inflation is very high. The big problem is the fact that people do not have a good source of income and the rate of poverty is insanely high. There are many people in here who hardly earn $3-4 per day and it is just not possible to survive in such kind of economical conditions. I am sure that there are many other countries that are facing such kind of problems. So, how can we prevent inflation and save businesses? If we cannot prevent inflation, then how can we manage it in an efficient way?

 

[Kaffyfolla]

During an inflation money and financial assets denominated in money cannot be depended on as stores of liquidity, since they decline in real value as prices rise.8 They even fail to provide acceptable liquidity to bridge the gap between transactions, because the intervals between cash receipts and disbursements may be long enough for prices to rise appreciably. In these conditions, attempts will be made to acquire assets whose value is expected to rise in the interval before the investment opportunity or other occasion for disbursement arises. This flight into nonmonetary assets is the source of many of the distortions which accompany an inflation, and is a partial cause of the decrease in the flow of resources to investment.

 

[Shigobad20201]

During an inflation money and financial assets denominated in money cannot be depended on as stores of liquidity, since they decline in real value as prices rise.8 They even fail to provide acceptable liquidity to bridge the gap between transactions, because the intervals between cash receipts and disbursements may be long enough for prices to rise appreciably. In these conditions, attempts will be made to acquire assets whose value is expected to rise in the interval before the investment opportunity or other occasion for disbursement arises. This flight into nonmonetary assets is the source of many of the distortions which accompany an inflation, and is a partial cause of the decrease in the flow of resources to investment.

You are quite right , during inflation , money and asset decreases sporadically and the prices reaches the Sun by rising to the top, and most of the people in the country are living in poverty.

 

[Toyoabasi]

I live in a country where inflation is very high. The big problem is the fact that people do not have a good source of income and the rate of poverty is insanely high. There are many people in here who hardly earn $3-4 per day and it is just not possible to survive in such kind of economical conditions. I am sure that there are many other countries that are facing such kind of problems. So, how can we prevent inflation and save businesses? If we cannot prevent inflation, then how can we manage it in an efficient way?

Managing inflation is a challenge on its own. During inflation, companies cannot procure assets, production is decreased because the cost of items are skyrocketed. At such times, companies would reduce production.

 

[Trexxxy]

There are several ways to reduce inflation, one of those ways is to increase local production, cut back on importation. Increase foreign exchange and also keep the currency strong.

 

[eLdavis]

I live in a country where inflation is very high. The big problem is the fact that people do not have a good source of income and the rate of poverty is insanely high. There are many people in here who hardly earn $3-4 per day and it is just not possible to survive in such kind of economical conditions. I am sure that there are many other countries that are facing such kind of problems. So, how can we prevent inflation and save businesses? If we cannot prevent inflation, then how can we manage it in an efficient way?

When it comes to economy, I don't really know much, but I think the link below has some good methods that can be used in controlling inflation.

https://www.economicshelp.org/blog/2269/economics/ways-to-reduce-inflation/

 

[Good-Person]

There are several ways to reduce inflation, one of those ways is to increase local production, cut back on importation. Increase foreign exchange and also keep the currency strong.

Unfortunately, it is not so easy to do that. Many countries depend on exported items. This is because not all the countries can produce everything on its soil. My country does not produce much oil and this is why petrol is scarce in my country.

 

[Trexxxy]

True. I understand that not all countries can be self sufficient. Even if your country doesn't have an oil deposit, that doesn't mean it doesn't have other mineral deposits or even agriculture produce, the aim to scale it up and export.

Unfortunately, it is not so easy to do that. Many countries depend on exported items. This is because not all the countries can produce everything on its soil. My country does not produce much oil and this is why petrol is scarce in my country.

 

[Thinker009]

Business are affected too during inflation as the price of goods and services moves high and the profit is still fixed , there are not just 100% effective means to control inflation as a business man ,you just have to diversify your investment so you would be less affected

 

[kinqzbitz]

Businesses are normally affected during inflation and it normally leaves people unemployed so to avoid this it's always better to have a plan B

 

[Godspower]

Inflation is one of the problems affecting the economy of developing countries. The prices of goods and services have skyrocketed while the average daily income is still very low. Government can help fight inflation by subsidizing the prices of some raw materials used in production of goods as well as making the currency exchange rate to be stable.

 

[Blessedsam60]

Inflation is worse here in Nigeria. Everyday things and prices goes up and will never come down. Most people have lost their jobs during covid-19 and it's now very hard to survive. The best way to tackle this inflation is to embrace local production in large scale to curb this.

 

[Lucy ID]

Inflation is a thing I don't understand at all in the country, the rate of things keep going higher and higher everyday irrespective of whatsoever it is, to save businesses and stop this the greater work is for the government to do

 

[Kane]

IN the situation like these, the government should create more jobs by establishing industries. The government should also gave low interest loans so that people can create business and start earning.

 

[Good-Person]

IN the situation like these, the government should create more jobs by establishing industries. The government should also gave low interest loans so that people can create business and start earning.

I live in a country where the government has no money to build roads, infrastructure, etc. So can can we expect the government to create jobs? Most of the Tier 3 countries rely on foreign aid.

 

[kayode10]

Inflation comes with a lot of negative effects on the every economy is capitalist or socialist one. inflation rate sa people power list and make it difficult for them to purchase the basic things they need in their life.

 

[Dagm1]

Inflation is something I don't understand in our nation; the rate of items keeps going up and up every day, regardless of what it is; the bigger task is for the government to perform to rescue companies and halt this.

 

[Justin]

Even though inflation is destroying the economy and business, there will still be a lot of millionaires and billionaires in the country, these people can establish businesses and industries to create jobs

 

[Sotherefore]

Only to countries that are not capable of maintaining the value of their currency, a country like the UK has one of the best economy in the world and their currency is the most valuable, this will depend on how they are managing the economy of their country.

 

[Syldan]

Well, inflation is one of the strongest factors which destroy the performance of the economy of a given state through failure of the business in operation to meet up to their demand as necessary. this in turns lead to the low standard of living of their citizens.