RECESSIOIN !!INFLATION..!!GLOBAL CRISIS.!!

THESE ARE THE PRESENT COMMON WORDDS WHICH WE USUALLY SEE IN DAILY NEWS Lets us now discuss briefly regarding the underlying concepts , their effects and counter effects in the present economic scenario. It would be like an cyclic chain..

Lets start with the burning issue INFLATION which is prevailing in almost all the developing countries. INFLATION: lets not define it much in complicated economic terms; inflation is a rise in the general level of prices of goods and services in an economy over a period of time. It is always said that 2-3% of inflation is Good for any developing nations. Indias inflation rate is 10.1% as on September 2011,there are many other countries where the inflation rate is much more higher than our nation .All those nations are listed below:

NOTE: ALL STATISTICAL INFORMATION IS SECONDARY DATA

Jamaica

13.

Mongolia

13

Sao Tome and Principe

13

Afghanistan

13.3

Angola

13.3

Pakistan

13.4

Mozambique

13.5

Nigeria

13.9

Guinea

15

Uzbekistan

15

Eritrea

20

Argentina

22

Congo, Democratic Republic of the 26.2

Venezuela

29.8

Above mentioned are the nations with burning inflation rate (HYPER INFLATION). As a result the value of money decreases and the prices of basket of goods and services increase considerably

Now let us discuss the opposite situation to Hyperinflation ie,DEFLATION it is a decrease in the general price level of goods and services. Thats the reason our economist stated 3% is the best Ideal Rate of inflation Following are the nations with Deflation:

Seychelles

-2.2

Ireland

-1.6

Gabon

-1.3

Latvia

-1.2

Faroe Islands

-1.1

Northern Mariana Islands

-0.8

Japan

-0.7

Niger

0.1

Dominica

0.1

Kiribati

0.2

Sint Maarten

0.7

Liechtenstein

0.7

Switzerland

0.7

Cuba

0.7

El Salvador

0.8

Saint Vincent and the Grenadines 0.8

Central African Republic

0.9

Lithuania

0.9

Slovakia

Taiwan

Qatar

1.1

Portugal

1.1

Netherlands

1.1

Germany

1.1

French Polynesia

1.1

Finland

1.2

Senegal

1.2

Spain

1.3

Croatia

1.3

Cote d'Ivoire

1.4

Sweden

1.4

New Caledonia

1.4

Italy

1.4

Burkina Faso

1.4

United States

1.4

Antigua and Barbuda

1.5

France

1.5

Czech Republic

1.5

Peru

1.5

Canada

1.6

Andorra

1.6

Benin

1.6

Macedonia

1.6

Curacao

1.7

Malaysia

1.7

Chile

1.7

European Union

1.8

Austria

1.9

Saint Lucia

1.9

Cameroon

1.9

Monaco

1.9

RBI POLICIES TO CONTROL INFLATION