Causes&Effect of in inflation in Pakistan Types Of Inflation Recommendation&conculsion

1. Group Member
Muhammad Manan 28476
ECONOMICS ANALYSIS FOR MANAGERS

2. “Inflation”
Causes and Effects of Inflation
And Recommendations to Reduce Inflation in
Pakistan
ECONOMICS ANALYSIS FOR MANAGERS

3. Outline
Introduction & History
Types of Inflation
Causes of Inflation in Pakistan
Effects of Inflation in Pakistan
Reason of Inflation
Recommendation & Conclusion

4. Introduction & History
“Inflation is a rise in the general
level of prices of goods and services in
an economy over a period of time”

5. Current History in Pakistan

6. Types of Inflation
Demand Pull Inflation
Cost Push Inflation
Induced Inflation

7. Demand Pull Inflation
Occurs when the aggregate demand is in excess than that of their supply

8. Cost Push Inflation
Occurs when the cost of factors of production rises regardless of in short supply or not.

9. Induced Inflation
Is based on the past inflation level and future expectations

10. Causes of Inflation in Pakistan
Supply Side Shocks
Increased Domestic Demand
Non-productive Expenditures
Corruption & Black Money
Printing New Notes
High Production Cost
International Borrowing and
National Debt
Slow Agriculture Development
Devaluation of Money
Federal Taxes

11. Effects of Inflation in Pakistan
General Effect
Negative Effect
Positive Effect

12. Reasons of Inflation
 Lack of balance in the country’s budget.
 Financial problem, financing the deficit of money by printing.
 Sudden increase in production costs.
 Significant increase in the level of energy resources.
 Faulty structure of the economy.
 Exported goods far exceeding imported ones.
 Too many monopolies in the economy.
 Imported Inflation.
 Problems with financial planning.

13. Recommendation & Conclusion
Measures to control inflation
 Monetary Policy
 Fiscal Policy
Others Measures

14. Monetary Policy
It aims at reducing money supply in the market.
Credit control
Issue of new currency

15. Fiscal Policy
It Majorly pertains to taxation and interest policies .
Reduction in unnecessary expenditure
Increase in tax
Increase in saving
Surplus budget
Public debt

16. Others Measures
Increase production.
Rationale wage policy.
Price control.
Rationing.