Inflation On The Economy : Inflation

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Inflation in Iraq As reported by D. Accustomed Naji al-Hamdani 2013, in a study on Inflation in the Iraqi economy, inflation arises in most cases because of the imbalance and lack of balance between aggregate demand and aggregate supply in the national economy. When commodity supply deficit to meet the total demand of the consumers of goods and services prices rising commodity groups and causing inflation. The greater the gap widening between aggregate demand and aggregate supply accelerates the pace of the rise in inflation rates. According to a report of Economic Affairs of the United Nations, the inflation rate in Iraq until 2006 amounted to 64.8%. According to the report, Iraq is the country most of inflation among the 22 Arab…show more content…
And contribute in particular the policy of economic liberalization that Iraq seeks to apply to incapacitate the monetary authorities in control the prices of the national currency actress Iraqi dinar to strengthen its monetary value and competitiveness in the foreign exchange market. The crisis experienced by the Iraqi economy is a complex crisis constitute a cause and a result of the crises of unemployment and services and in the failure of the productive sectors and skyrocketing prices. According to the Iraqi Ministry of Planning, the proportion of people living below the poverty line 23% and the number of poor people in Iraq exceeded 8 million, and the unemployment rate more than 20% until 2012. 3.2 Consequences of Inflation in Iraq Inflation can have significant economic effects. It can, for instance, influence the distribution of national income and wealth. A low and stable rate of inflation is desirable both for the health of the economy and for individual welfare. There are many measures of inflation, each suited to a different purpose. Inflation - a continuous upward movement in the general level of prices - can impose costs on individuals and the economy.
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