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Inflation - Essay Example

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This is because the international market today, is controlled / influenced by things more than just owner’s equity, project feasibility considering the…
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Inflation
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Inflation

increasing reliability on the use of technology to estimate future plans, widespread awareness of the economic decision making processes, readily available literature on risk management in business and much advanced, organized and computerized methodologies to ensure solid business-monitoring, projects today are incurring heavy financial losses. And the situation is same throughout the world. If we draw an analysis of the trends of the past and present, it would apparently seem that the modern-world businessmen are far immature and less educated in business as compared to so called “experts” of the past. It appears that development in the science and technology has generated an awareness that has adversely affected the practical world. Things are happening in an unexpected way. This proves that something bigger, not much considered / studied, is controlling business in the international scenario, and that is “inflation”. Inflation is majorly responsible for the jammed projects, lessened GDPs, suppressed business, increased loans and this has resulted in aggravating poverty, famine and various other evils in the educationally rich and knowledgeable societies of the modern world. It is the byproduct of inflation that we see people possessing bigger sums than what their forefathers had possessed in their times, still modern-age people are poorer than their forefathers.
Inflation as the name suggests, means to expand in volume and decrease in density / value, just like a balloon would expand when air is pumped in it. Apparently it seems bigger when inflated than the size it had been originally, but it becomes light enough to float in the air as compared to the uninflated balloon-material. Likewise, money has increased in amount manifolds, yet it has lost its worth. In other words, the “purchasing power” of money is lost. According to Park (2007), p-544, inflation means a rise in the price of an object with the passage of time or in other words the amount ... Read More
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