Types of Inflation, Causes and how Inflation is Measured Essay

Types of Inflation, Causes and how Inflation is Measured - Essay Example It is important to note that, the higher demand will in turn pull up prices of commodities thus resulting to too much money circulating in an economy. This can be attributed in times of war, or rather political crisis in a country's economy. Pricing Power Inflation This also referred to as profit-push inflation. This is a type of inflation, which result from a situation whereby, individuals in business intentionally and administratively decide to increase the prices of commodities and services. This intentional move aims at increasing the profit margins. The makers exercise their market influence by increasing the prices of product and services to suit their expectations. It occurs in monopolies and oligopolies market. They do this due to their concentration in the market. Cost- Push Inflation This occurs when the price of goods or service increase due to the rising cost of its production or when the maintenance cost rises. It is apparent that the resultant excess demand created by t he rising cost of production causes prices to increase. An example is whereby price of an agricultural product such as maize rises due to an increase in the cost of fertilizer production. Wage-push inflation This normally occurs when wages or labor costs rises due the influence from the labor union’s demand for the increase in wages. In addition, as it happens, the productivity remains constant. The resultant cost and effect will drift to the consumers. The increase in the cost of labor will cause the business to cut down the number of laborers hence consequently resulting to the low productivity. On the other hand, the fall in productivity level, which is low supply, will cause prices to rise due to the constant consistency of the demand. This inflation causes unemployment since higher price level means that, no more laborers are needed. In this scenario, most institutions lay off some of the employees. Unless demand for the wage stops, there will be continuous, high price l evel coupled with higher unemployment and low output. Sectoral Inflation This kind of inflation occurs on the relationship between related or unrelated product and or services. This occurs when change in the price of a product influences the price of another. For example, a stationery user, a case, or a situation whereby the price of timber price rises, the stationery dealer will in turn increase the price of stationery items such as books to suit their profit margin thus causing a general increase in prices occurring in every unit of product or service. Supply shock inflation This arises under unpredictable circumstances in an economy, for example, when there is unpredictable drought occurrence, the price of the agricultural products will rise rapidly and especially when there is no enough stock to curb and fix the situation. Hyper inflation It is a form of inflation that occurs when country involved is in economic backdrop thus in dire need of monetary valuables and funding. It is where prices rise at a higher rate, and when the rate of inflation exceeds four digits. Creeping inflation It occurs where price level rises normally between 1 and 7%. Imported inflation It deals with international trade. The prices of imported goods normally have an effect in domestic prices. Causes of inflation It is worth noting that inflation occurs under various circumstances for instance when there are changes in the price of foreign goods. This will have an impact on the overall payment made to the outsiders.

U.S. History Essay Example | Topics and Well Written Essays - 1000 words

U.S. History - Essay Example It should be noted that legalization of slavery was prevalent just before the eruption of American civil war (Kellogg 47). This is where most of the slaves were emancipated from slavery. As a fact, emancipation from slavery was a series of processes that were subsequent statutes. This helped end the period of slavery in the United States. Apparently, some states were still practicing slavery in the beginning of the 19th centuries. However, the elites in the colonies were also the acme of leadership in the states after annihilation of slavery. Since they had an upper hand in leadership, they were advantaged to clinch the leadership of the states. For example, renowned economists and politicians were able to retain some of the leadership positions in the states. Since the colonies were abolished, they took the opportunity to control the states since they had replaced the colonies. Slavery is stated as the exclusive right to own human beings with their descendants. As a fact, the owners of the slaves were to benefit from the free labour they offered. This aspect helped develop the northern and southern states in the United States. To begin with, slavery was an aspect that was protected under the constitution. Therefore, it was acceptable for people to own other human beings for their personal reasons. Secondly, the slavery in the United States was ostensibly benefiting the southern states (Kellogg 49). Though it did not directly benefit the northern states, they were willing to enhance its continuity. As a fact, most of the industries in the northern states, especially textile and shipping depended on the crops grown in the southern states. Thirdly, slaves were treated with utter inhumane nature since they were considered property. For example, most of the owners treated the slaves with brutality, rape and inhumane whipping. In some bizarre instances, the slaves were executed. Consequentially, stopping slavery in the United States was a commitment from all quarters. This was done through rebellions and failure to comply. Similarly, some slaves had to escape to other regions like Canada, which did not believe in slavery. A subsequent phenomenon of market revolution was introduced in the United States. This was to enhance the capitalist state in improving its economy. Apparently, market revolution is considered one of the contradictions in the United States. Though it was a change on how manu al labour was handled, it had similar characteristics of slavery. The United States decided to ratify its constitution to become an independent country. This was initiated in the mid 1770’s. Apparently, many patriots deciphered that it was time to make United States and independent country. To make this happen, the patriots clutched control of all the colonies in the United States. Immediately after this, they declared an independence war. After over a decade, the United States ratified its constitution in 1789. After the 1800 elections, the democratic republic party was dominant both in the US house and in the senate (Kellogg 68). Similarly, they were able to clinch the presidency due to their strong support for state rights. The initiation of this government led to enhancement of the independent judiciary system. As such, there were limited criticisms in concerns to the judiciary, presidential system and the congress as their independence was reinstated. Though there was a better system in the congress, judiciary and presidential syste