discussion I
MATERIALS: "REACHING RECORD FEBRUARY THE LOWEST INFLATION"
DISCUSSION:
KNOWLEDGE AT A GLANCE:
theoretically Inflation is a state where the price level tends to rise dala long time.
This type of inflation
A. The inflation rate
- Soft = inflation rate equal to <5% - faster = inflation at 5% -10%
- = Inflation rocketed to speeds of> 10%
B. The severity
- Light = <10% - is = 10-30% - 30-100% by weight = - hyper inflation => 100%
The causes of inflation:
- (Demand pull inflation) = increase in the demand exceeds supply.
- (Cost push inflation) = increase in production costs
- (Imported inflation) = inflation from abroad.
- (Domestic inflation) = Inflation of the country
The impact of inflation affecting the value of money and could lead to scarcity of labor unemployment Setra and others.
The solution of the inflation by implementing fiscal and monetary policy
SUMMARY OF DISCUSSION:
The inflation rate during February 2012 recorded 0.05% lower than in previous years is 0.17% in 2005, 0.58% in 2006, 0.62 in the year 2007,0,65% in 2008, 0.21% in 2009, 0.30% in 2010, 0.13% in the year 20 011.decline in inflation is caused by several things including:
- (Demand pull inflation) = increase in the demand exceeds supply.such as the increase of food that occurs in tomatoes, peppers, rice reached 0.05% increase in the tomatoes, 0.17% in chili, 0.02% in rice caused by lack of supply for some areas that supply food have not harvest and the rainy season which occurs in February to make food supplies running low while demand should continue to be available, or it can be said permmintaan increase greater than the supply of goods available.
- (Cost push inflation) = increase in production costsAs in the clothing that was one of the existing summary of the discussion, stood at 0.09% increase that occurs because of rising production costs there.
- (Imported inflation) = inflation from abroadas in the gold price rises by an average of 7% in Cilegon, one of which became our discussion, this was due to world economic turmoil in the United States and Europe that resulted in the gold price go up in our country.
- (Domestic inflation) = Inflation of the countrycovering (Cost push inflation) increase in production costs, (cost push inflation) increase in production costs and other factors such as nature and so on.
Which of the events or phenomena which are affected in 40 cities and 26 cities experienced inflation deflation when inflation peaked at Matraman city of Pontianak 1.73% and 1.70%. While deflation is highest in the city and sibolaga jambi -1.29%, and -1.23% from northern Sumatra.
SOLUTION OF DISCUSSION:
The solution of the inflation may be revised or reviewed from several aspects such as:
A. Monetary Policy:
government policy through the central bank to influence the amount of the money in circulation.
- Discount policygovernment policy to influence the value and the amount of money in circulation with the instrument used is the interest rate on commercial banks.if the inflation, the government should emningkatkan public interest, then the public will tend to save that money in circulation is reduced.deflation if the government enurunkan interest rates of commercial banks, the people will tend to withdraw money from bank to production activities so that the money supply increases.- Cash Ratio Policy (Policy Inventory Cash)government policy to empengaruhi amount of money in circulation with the instrument of reserve funds that are available in the world of commercial banks.if the inflation, the government raised cash reserves to the world so that the ability of banks to lend less, so the amount of money circulating in the community of small seakainif deflation, government cash reserves to dunnia enurunkan ssehingga banks can create a great credit to the amount of money in circulation seakin much.
- Loose Money Policywisdom that dii use to cope with menabah ddeflasi outstanding amount of the money intended to boost production.
- Tight Money Policypolicies that governments in implementing selective credit to limit the amount of money in circulation to cope with the pace of infalsi.
B. Fiscal policy:
government policies regarding expenditures and revenues of the State.
- Reduce state spending
- Save pengeluarangan
- Streamline the tax
C. Kebijakakan non-monetary and non-fiscal:
- Increased production
- This real wage increase
- Control and supervision of prices
CONCLUSION:
The rate of inflation is the economic phenomenon that occurs in a common economy. Inflation will become a serious economic problem which berlangsunng time in a long time and are at a high level that is usually said to be in hyper inflation. In gteorits indicate the umu and price increases continuously. So the increase that occurred in a small group of speckle said goods inflation. Similarly, the price changes occurring once said inflation has not been biased.
so to handle situations like this diahrapkan of government and society to work together to enable the state to be expected.
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