Inflation is the most dangerous enemy of well-being and disease can strike national economies. In addition to that pension exacerbate the suffering of the broad sectors of the population, and changes the shape of class structure and social effects of the disposal and recovery will not be easy, especially if the symptoms became more serious inflation.
Economists is that inflation is dangerous if it exceeds the favorites, or if it becomes ten percent or above. History records the contemporary economic models for countries inflation rates exceeded these levels reached dangerous limits to become the local currency carrying bags for the payment of prices is simple.
And can give examples of some Latin American countries like Argentina, as well as the case of Germany in the war, Serbia, Turkey and other countries. If the welfare of living is the first victim of inflation, the middle classes, the victim and crush the second Gmehrtha join the majority class of poor and downtrodden. Can not be dealt with merely as a result of this change the distribution of the class, they have their social and economic development. Middle class element of stability and social safety, one of the important factors of balance in society; It is also in third world countries are useful for the development process. As rich in these countries often maintain Bersdthm abroad, while the poor Their role is limited in the investment process by virtue of the living situation that surrounds them. Have formed the middle class in recent decades, the majority of Iraqi society. Situation but did not break down since the start of the wars of the former regime.
If we treat the simplified concept of inflation, which he says is “a lot of money for a few goods”. Iraq in his last years, offers a model for this image. Went down the purchasing power of the Iraqi dinar rates significantly, and became incomes are not enough almost to fill their needs, and declining Iraqi dinar exchange rate of about three thousand times, if we take the exchange rates, which is equal to the dollar nearly a thousand and two hundred dinars. Thus, any Iraqi authority are to come before the challenge of controlling inflation is rampant, it was reported some account of the Iraqi dinar.
There is a solution, which resorted to some countries, is that the deleted zeros from its currency degraded and replaced by a thousand percent, or unit of currency one unit of new currency. But thus need to make an improvement in economic data and the availability of a minimum level of confidence the new currency and the economy, which assigned, as well as have some cash reserves of hard currencies, which are financed import operations.
Without the availability of these lower limits, you can not cancel the zeros on the process to achieve the effect.
The States usually resort to solve the problems of inflation where the balance between money supply and the amount of goods. The economists usually like this policy of trying to minimize and maximize the cash bag bag of goods, in reference to simplify the problem and propose a solution.
Thumbnail bag Monetary easing supply by means of monetary and fiscal policy, which he plays a central bank a crucial role in habit. The larger bag of goods requires increased productivity significantly, which is the approach taken by Germany to promote their economies after the war grinding stumble.
In fact, increase productivity and improve them is a sure panacea for the eradication of inflation. Which is of course the biggest impact of fiscal and monetary remedies and more durable in efficiency. There we find a society of rising productivity never exposed to inflation; and we have the most prominent examples are the Japanese and German economies, inflation rates are almost non-existent in them, and less interest to the lowest levels of the border. And that is only for the production of higher activity in these communities, which give immunization against the disease economy.
However, such treatment does not happen overnight. There must be substantial modifications to the whole economic field, and change a lot of educational and social concepts as well, which glorifies the values of work and creativity, perseverance and refer people to the population of active producers. Inflation will be a major obstacle to efforts, which will be made to rehabilitate the Iraqi economy and alleviate the suffering of large segments of society. However, the task is not Palmsthilh.
It is necessary to adopt a holistic approach in dealing with intentionally providing cash reserves and then adjust monetary and fiscal policies and improve the productivity of the individual and the Iraqi society.
On this basis, a proposal may delete some zeros from the currency valid proposal to re-value of the Iraqi dinar.
Alternate Translation:
Cancel the zeros … Entrance to save currency
Inflation is the enemy of well-being and serious illness could hit national economies. In addition, it exacerbates the suffering of broad sectors of pension and social stratification structure deforms, the ditch and recovery won’t be easy, especially if you have symptoms of inflation.
The economists that inflation be dangerous if exceeded, i.e. If the occupy 10 per cent and above. Contemporary economic history records of models and growth rates exceeded those levels and limits so serious shoulder bags have become local currency to pay for simple.
Some examples could be cited to Latin America countries as Argentina, as well as the situation of Germany in the war, Serbia, Turkey and other countries. And if the well-being of living is the first victim of inflation, the middle classes are the second victim and admitted its collection great crushed with poor suppressed. Cannot deal with this result as just change the class distribution, social and economic implications. The middle class is an element of stability and social security are important factors of balance in society and in third world countries is beneficial to the development process. As rich in these States often retain their assets abroad, the poor their limited in the investment process by which living situation around them. Have formed the middle class in recent decades the majority of Iraqi society. Did not break down the situation, but since the start of the wars of the previous regime.
If we treat the simplified concept of inflation which says is “a lot of money for little goods”, Iraq in recent years provides a model for this image. Purchasing power has fallen to Iraqi dinar note rates and entry of citizens is not sufficient to meet their needs, and the Iraqi dinar exchange rate declined approximately 3,000 vulnerable, if MERs, which equals a dollar nearly 1,000 and 200 Iraqi dinars. Thus any Iraqi authority come to challenge the uncontrolled inflation adjustment of hand, some account of the Iraqi dinar.
There is a solution, which resorted to some States, is to delete the zeroes from the currency of degraded and replace% or 1,000 units of currency in one unit of the new currency. But so do need improvement in economic data and the availability of a minimum of confidence in the new currency and the economy, which assigned, as well as have some cash reserves of hard currency, which finances the import operations.
Without providing this minimum, the uninstall process cannot achieve zeros.
States usually resort to solving the problems of inflation to balance the presentation of criticism and the quantity of the goods. Like economists usually this policy of trying to minimize the bag of cash and maximize cargo bag, referring to simplify the problem and propose a solution.
Minimize monetary means relaxing before a sack by means of monetary and financial policies, in which the Central Bank played a crucial role in practice. Either zoom bag goods requires increasing productivity significantly, and is Germany’s approach to promote their economies after a fierce war boh.
In fact, increasing productivity and upgrading is the cure certainly rooting for inflation. It is of course more influential treatments of financial, monetary and more durable in effectiveness. It does not find a high productivity suffer inflation never; most examples before us are Japanese and German economies, which are almost non-existent inflation rates, and less interest to minimal levels. And only for productive activity in those societies, higher which give immunization against the disease.
However, such treatment does not happen overnight. There must be substantial amendments to the economic sphere, and change a lot of social and educational concepts, that glorifies the work values, creativity and perseverance and refer people to a crowd of producers. Inflation will be a major obstacle to efforts made to rehabilitate the Iraqi economy and alleviate the suffering of broad segments of society. However, the task is not impossible. It was necessary to adopt a holistic approach in dealing with cash reserves to provide and modify monetary and fiscal policies and raising the productivity of the individual and society.
On this basis, a proposal to delete some zeros from the currency valid proposal to return the value of the Iraqi dinar.
The Currency Newshound 