Theme: Inflation Student: Sheravatov Nodir

Theme: Inflation

Student: Sheravatov Nodir

Teacher: PhD Allayarov Sh.

As we know, Inflation means the devaluation of money. Inflation is the increase in the amount of paper money in circulation in excess of the needs of the economy as a result of the imbalance of goods and money.As prices rise, a single unit of currency loses value as it buys fewer goods and services. This loss of purchasing power impacts the general cost of living for the common public which ultimately leads to a deceleration in economic growth. The consensus view among economists is that sustained inflation occurs when a nation's money supply  growth outpaces economic growth.

Inflation is not only depended money. Perhaps it is the product of an economic situation that shrinks as the economy rises, increasing during a recession.
Inflation can be divided into 2 types:

1.Open

2.Secret or hidden.

Open inflation is observed in markets where free prices apply. Uneven price increases disrupt the market mechanism, but do not eliminate it. The economy reacts to market changes, and different markets adapt to equilibrium.

In the context of hidden inflation, the situation is different, and the government is worried about rising prices and is fighting it. There is general administrative control over revenues and prices, with some freezing. Hidden inflation disrupts the mechanism of market self-regulation.

Every country must prevent and fight against inflation. If the inflation rate is a one-digit number, this is normal for the economy. In the current situation, as a result of a sharp rise in prices during quarantine, the inflation rate is likely to be significant for 2020.
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