Types of Inflation and Ways to Handle It (Full Discussion)
Types of Inflation and Ways to Handle It (Full Discussion) – On a recent occasion About Knowledge have discussed the notion of inflation. So, this time we will discuss the types of inflation, its impact and how to handle it.
Types of Inflation and Ways to Handle It (Full Discussion)
Let's discuss the types of inflation first carefully.
Types of Inflation
Inflation is grouped into three (3) categories, namely based on its nature, cause of occurrence, and based on its origin. Check out the explanation.
Types of Inflation Based on Their Nature
Types of inflation based on its nature are divided into 4 (four) groups, namely low inflation, medium inflation, heavy inflation, and very high inflation.
-
Low Inflation (Creeping Inflation)
Is an inflation whose amount is <10% per year. Inflation like this seems needed in the people's economy so that producers are encouraged to produce goods and services. -
Moderate Inflation (Galloping Inflation)
This is inflation which ranges from 10-30% annually. This inflation occurs when the price of goods and services is rising rapidly and the amount is large. -
Heavy Inflation (High Inflation)
This is inflation that ranges between 30-100% annually. -
Very High Inflation (Hyperinflation)
This is inflation that occurs with price increases reaching 4 digits or above 100%.
Types of Inflation Based on the Reasons
Types of inflation based on the causes are divided into 3 (three), namely demand pull inflation, cost pull inflation, and bottle neck inflation. Check out the explanation.
Demand Pull Inflation
Is inflation that occurs due to a demand (demand) that is not balanced with an increase in the number of production offers. This results in an increase in the price of goods in accordance with the law of demand, namely if the demand is high while the supply is constant, the price will rise.
-
Cost Push Inflation
It is inflation whose cause is the increase in production costs caused by increases in input costs or production factor costs. -
Bottle Neck Inflation
It is inflation whose cause is the demand factor or the supply factor.
Types of Inflation Based on Origin
This type of inflation is divided into 2 (two), namely domestic inflation and imported inflation, along with an explanation.
-
Domestic Inflation
This is inflation that occurs as a result of a deficit in financing and state spending that appears in the state budget -
Inflation on Imports
This is inflation originating from abroad that arises because countries that are trading partners of certain countries are experiencing high inflation. Increases in prices abroad which are the main trading partners will directly or indirectly increase domestic production costs.
How to Handle Inflation
There are several ways that inflation can be handled or controlled, here are the reviews:
- Increase the productivity of domestic goods and services, especially staple goods.
- Increasing the productivity of micro industries such as home industries.
- Reducing the consumptive culture of society with education.
- Control over taxes and prices of goods & services by the government.
- Reducing exports of goods and services from abroad, especially if the country is experiencing high inflation.
- Increase employment.
- Reducing food subsidies whose consumers are not only poor citizens, for example fuel.
Thus our brief discussion this time about Types of Inflation and Ways to Handle It (Full Discussion), hopefully useful and can add insight to all of us. Thank You.
List of contents
Recommendation:
- √ Definition of Music, Functions, Types and Elements (Discuss… Understanding Music, Functions, Types and Elements (Discuss Completely) - In this discussion, Around Knowledge will explain about Music. We listen to music almost every day, whether we're at home, on the road or at work.
- Examples of Scientific Work: Functions and Rules of Language Examples of Scientific Papers: Functions and Rules of Language - What are examples of good and correct forms of writing scientific papers? Previously, Seputar the knowledge.co.id has discussed Scientific Work: Definition, Characteristics, Benefits,…
- Purpose of Explanatory Text: Definition, Structure, Characteristics, Rules,… Purpose of Explanatory Text: Definition, Structure, Characteristics, Rules, Examples - In this discussion we will explain about explanatory text. Which includes the understanding of explanatory text, the purpose of explanatory text, the structure of the text...
- Factors Inhibiting Social Mobility: Definition, Factors… Inhibiting Factors of Social Mobility: Definition, Driving Factors and Explanations - What is the meaning of social mobility and What are the inhibiting factors? On this occasion, about the knowledge of Knowledge.co.id will discuss it, including nutritional content and naturally…
- 9 Kinds of Wind: Definition and Explanation 9 Types of Wind: Definition and Explanation - On this occasion we will explain about Wind. Which includes the meaning of wind, types of wind and explanations with complete and easy-to-understand discussion.
- DNA and RNA: Definition, Characteristics, Differences and… DNA and RNA: Definition, Characteristics, Differences and Discussion of the Process - What are the meanings and differences of DNA and RNA? On this occasion, Seputarknowledge.co.id will discuss it and of course other things that...
- Mangrove Forests Are: Characteristics, Benefits, Causes of Damage And… Mangrove Forests Are: Characteristics, Benefits, Triggers of Damage and Countermeasures - What is meant by forest mangroves and their functions? On this occasion, Se regarding the knowledge.co.id will discuss it and of course about it other…
- √ Definition of Capital Structure, Components, Theories & Factors… Definition of Capital Structure, Components, Theories & Factors (Complete) - In this discussion we will explain about Capital Structure. Which includes the understanding of capital structure, capital structure components, capital structure theory, and…
- Islamic Kingdoms in Indonesia and a Brief History Islamic Empires in Indonesia and History in a Nutshell - What is the history of Islamic empires in Indonesia?, On On this occasion, Seputarknowledge.co.id will discuss it and of course about other things as well covered it. Let's see…
- Attributes of Allah: Necessary Attributes, Impossible Attributes, Jaiz Attributes and… Attributes of Allah: Necessary Attributes, Impossible Attributes, Jaiz Attributes and Their Explanations - What are the Attributes of Allah that we need to understand. On this occasion, Seputarknowledge.co.id will discuss the characteristics of...
- Motivational short stories: definition, writing tips and examples Motivational Short Stories: Definition, Writing Tips and Examples - What is a Motivational Short Story?, On On this occasion, Seputarknowledge.co.id will discuss whether it is the Short Story of Friendship and other things about it. Let's see…
- Types of Drones, Terms, Parts, Basic Principles And… Types of Drones, Terms, Parts, Basic Principles and Movement - What are the types of drones and function?, On this occasion Seputarknowledge.co.id will discuss it and of course other things Also…
- Movement System in Humans: Bones, Joints, Muscles,… Movement System in Humans: Bones, Joints, Muscles, Functions, Abnormalities and Disturbances - What are the systems motion in the human body?, On this occasion, Se regarding the knowledge.co.id will discuss it and of course about…
- Inclined Plane: Definition, Formulas, Mechanical Advantage And… Oblique Plane: Definition, Formulas, Mechanical Advantages and Examples of Problems - What is meant by plane oblique and how to calculate the physics? naturally…
- The Political Life of the Majapahit Empire: Early History and… The Political Life of the Majapahit Kingdom: Early History and Legacy - How was the Political Life of the Kingdom Majapahit? On this occasion, Seputarknowledge.co.id will discuss the Majapahit Kingdom and other things covered it. Let's look at the discussion together...
- Fixed Assets Are and Their Characteristics (Discussion… Fixed Assets and Their Characteristics (Full Discussion) - On this occasion, we will start discussing fixed assets. Of course some people are familiar when they hear the word...
- 25 Definition of Inflation According to Experts (Full Discussion) 25 Definition of Inflation According to Experts (Full Discussion) - Inflation, what comes to your mind when you hear the word inflation? If you went to school or college majoring in economics, surely you have...
- √ The Definition of Social Groups and Their Characteristics (Discussion… Definition of Social Groups and Their Characteristics (Full Discussion) - For the discussion this time we will start discussing social groups. What is a social group? For this reason, it will be explained here so that readers…
- Examples of Ovoviviparous Animals: Definition, Characteristics and Explanations Examples of Ovoviviparous Animals: Definition, Characteristics and Explanations - What are examples of ovoviviparous animals? On this occasion, Seputarknowledge.co.id will discuss Ovoviviparous animals and things about them. Let's take a look at the discussion on…
- √ Definition of Social Media, Characteristics, Functions, Types &… Definition of Social Media, Characteristics, Functions, Types & Impact - In this discussion we will explain about social media. Which includes the definition, characteristics, functions, types and impacts of social media by…
- √ 22 Kingdom Names in Indonesia and Their Complete History 22 Kingdom Names in Indonesia and Complete History - We now live in a modern era with an independent country. Did you know that long before Indonesia experienced independence,...
- Court Tennis: History, Techniques, Types Of Strokes, Properties… Court Tennis: History, Techniques, Types of Strokes, Match Properties and Systems - What is the sport of Tennis Court? On this occasion, Seputarknowledge.co.id will discuss what is Court Tennis and other things Which…
- Example of historical story text in Indonesia Examples of historical story texts in Indonesia – What are examples of historical stories like? This time around the knowledge.co.id will discuss examples of historical stories and their structures. Let's take a look at the discussion in the article on…
- Rain Occurrence Process: Types and Forms of Rain The Process of Rain: Types and Forms of Rain - How does the process of rain take place?, On On this occasion, Seputarknowledge.co.id will discuss this and of course other things as well covered it. Let's see together…
- 11 Types of Soil and Explanations (Full Discussion) 11 Types of Soil Following Explanation (Full Discussion) - The interaction between soil forming factors will produce soil with different properties. Based on the forming factors and soil properties, some experts...
- Definition of White Blood Cells (Leukocytes), Functions, Types and… Definition of White Blood Cells (Leukocytes), Functions, Types and Characteristics - This time we will discuss about blood. Blood is an important thing for humans, if you've ever heard that someone is...
- Examples of Industrial Waste: Definition of Waste, Types, Characteristics and… Examples of Industrial Waste: Definition of Waste, Types, Characteristics and Impacts - What are some examples of waste industry? At this time, Seputarknowledge.co.id will discuss what industrial waste is and elements -element…
- The Collapse of the Kediri Kingdom: History and Legacy The Fall of the Kediri Kingdom: History and Legacy - The Kediri Kingdom or the Kadiri Kingdom or the Panjalu Kingdom was a kingdom that existed in East Java between 1042-1222. The kingdom is in the city…
- 74 Definition of Education According to Experts 74 Definition of Education According to Experts – Humans have been educated since they were born into the world until they enter school. The word education is no longer foreign to our ears, because all...
- LHO Text: Definition, Characteristics, Characteristics, Purpose, Functions,… LHO Text: Definition, Characteristics, Characteristics, Purpose, Function, Structure, Linguistic Rules and Examples - What is what do you mean by LHO Text or Observation Report Text? On this occasion About knowledge.co.id…