The necessity of developing appropriate economic plans to reduce inflation

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The necessity of developing appropriate economic plans to reduce inflation

Post  Admin on Mon Apr 10, 2017 8:14 pm

11/4/2017 12:00 am

Saad al-Tai

Inflation is known as the continuous rise in the price level, which is linked to the devaluation of money, which leads to a decline in purchasing power.

Inflation is a problem that many countries suffer from. The rate varies from one country to another depending on the strength of their economy and the appropriate plans to overcome this problem and address its effects on the economy.

the National .

Iraq needs in the current situation to accelerate the development and implementation of economic plans appropriate and carefully studied in order to reduce the phenomenon of negative inflation, which could be the first items to work to reduce unnecessary spending and guidance to the important aspects and work to encourage investment in order to increase employment opportunities and increase Revenue to the public budget And diversification.

These plans should include the promotion of the national industry in all its forms and the encouragement of agricultural projects and the provision of necessary inputs to reduce the excessive importation of products that can be produced locally.

 It is also important that these plans include the provision of national production at competitive prices that can reduce the difference The rise in the prices of goods and industrial and agricultural products and the foreign causes of the repercussions of purchasing reflected on the citizen and the national economy negatively and lead to the aggravation of inflation, which in turn feeds itself in the ring
ongoing .

The development of plans to reduce inflation is a priority to be achieved in order to avoid the negative effects caused by inflation as a satisfactory economic phenomenon must be working to get rid of them and reduce the negative effects and repercussions in the economy
the National .

Inflation is a major obstacle to the economic development in the country because of its negative effects in the development plans because of price fluctuations and what constitutes an obstacle to the implementation of the provisions of the development plan, which was prepared in advance on estimates contrary to the rise in prices resulting from inflation, and inflation leads to imbalance in The inequity of the distribution of wealth in society, which is detrimental to the wealthy at the expense of workers and employees and fixed income, which leads to the increase of wealth rich and increases the poor and the negative effects that may cause the level of society in the form of

In terms of fiscal policy, it is possible to work to reduce public expenditure and increase tax revenues. In terms of monetary policy, the monetary reserve is raised and interest rates are raised. In addition, Which stimulates the process of economic development and leads to a balance in prices resulting in the elimination of a problem Inflation.

Maintaining a stable level of prices will ensure the success of economic development plans and the positive effects they produce in the national economy.

That the work on the elimination of inflation must be in accordance with a plan to be developed by specialists in economic policies that cooperate with those responsible for the conduct of the movement of the national economy to implement in order to achieve the objectives of the plan in the elimination of the problem of inflation and the advancement of the national economy.


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