The Effect of Inflation on the Economy of Bangladesh
ASSIGNMEN
The effect of inflation on the economy of bangladesh
COURSE NAME
Course: BUS
Code- 201
PROGRAM
BBA
SUBMITTED TO Ashik Mahmud
Department of Scholl of Business
University of Liberal Arts Bangladesh SUBMITTED BY
Rahatul Islam
ID: 091011146
Sec: 01
SUBMISSION DATE
01/03/2013
Department of Business Administration
University of Liberal Arts Bangladesh
What Is Inflation?
Is the unexpected and untended change, in the level of price. In order word’s when huge amount of money run’s behind few amount of good’s and service is consider as inflation’s.
During inflation the level of domestic currency depreciate while. The value of foreign currency affricate. For example, if the inflation rate is 2% annually, then theoretically a 100tk pack of gum will cost 120tk in a year. After inflation, your dollar can't buy the same goods it could before hand.
What Causes Inflation?
There are three causes of inflation. The first cause is called demand-pull inflation. This occurs when demand for a good or service rises, but supply stays the same. Buyers become willing to pay more to satisfy their demand. Demand-pull inflation can be accompanied by irrational exuberance.
The second cause is cost-push inflation. It starts when the supply of goods or services is restricted for some reason, while demand stays the same. When the supply of labor is not enough to meet demand, it can create wage inflation. In the past, inflation in prices generally led to wage inflation, so that companies could retain good workers. However, competition from technological alternatives (such as robotics) and lower-income countries means that wages haven't kept up with prices. Higher prices combined with stagnant wages means your standard of living has decreased. It's another reason for income inequality in the U.S.
The third cause is overexpansion of the money supply. That's when a
The effect of inflation on the economy of bangladesh
COURSE NAME
Course: BUS
Code- 201
PROGRAM
BBA
SUBMITTED TO Ashik Mahmud
Department of Scholl of Business
University of Liberal Arts Bangladesh SUBMITTED BY
Rahatul Islam
ID: 091011146
Sec: 01
SUBMISSION DATE
01/03/2013
Department of Business Administration
University of Liberal Arts Bangladesh
What Is Inflation?
Is the unexpected and untended change, in the level of price. In order word’s when huge amount of money run’s behind few amount of good’s and service is consider as inflation’s.
During inflation the level of domestic currency depreciate while. The value of foreign currency affricate. For example, if the inflation rate is 2% annually, then theoretically a 100tk pack of gum will cost 120tk in a year. After inflation, your dollar can't buy the same goods it could before hand.
What Causes Inflation?
There are three causes of inflation. The first cause is called demand-pull inflation. This occurs when demand for a good or service rises, but supply stays the same. Buyers become willing to pay more to satisfy their demand. Demand-pull inflation can be accompanied by irrational exuberance.
The second cause is cost-push inflation. It starts when the supply of goods or services is restricted for some reason, while demand stays the same. When the supply of labor is not enough to meet demand, it can create wage inflation. In the past, inflation in prices generally led to wage inflation, so that companies could retain good workers. However, competition from technological alternatives (such as robotics) and lower-income countries means that wages haven't kept up with prices. Higher prices combined with stagnant wages means your standard of living has decreased. It's another reason for income inequality in the U.S.
The third cause is overexpansion of the money supply. That's when a