Inflation

Inflation was a social phenomenon that occured in our country. Inflation was an economic
situation where price increase. Price increased usually occure for long time . price increase was
temporary when ied mubarok came and prices would decrease when ied mubarok finished. Inflation
generally happened because citizens has too much money. Inflation never can rid of clearly.

Inflation never can rid of clearly because of increasing of demand and cost production.
Demand pull inflation caused by increasing of demand actually aggregate demand got higher than
usual. This demand increasing happened becaused increasing goverment comsuption,export
necessary etc. Cost pull inflation happened when cost production got higher becaused resourch
more expensive, for examples increasing of wages, increasing of fuel . increasing of cost production
could affected to price and thats why inflation happened.

The number of inflation was an economics indicator that can be used in taking step in
economy thats why number inflation must be counted so there is standard in taking dicision, for
example a corporation wants increase the labour wages to balance increasing price because its not
enough to balance the inflation.

Effect and how to control inflation. First, the effect of inflation not always gave us bad effect
for life,controled inflation can increase economic activity, for example the effort of inflation for
income,export calculation price. Secondly one of controling inflation are moneter policy and fiskal
policy. The purpose of Moneter policy is decrease amount of money thatcitizen has. Central bank as
a holder otority in monetary departement can took some policy for controling the inflation. The
policy are cash rasio,disconto,open market. Fiskal policy was a step too influences income and
expenditure goverment they are increasing tax,cutting goverment expenditure.

In indonesia this phenomenon often come because indonesia is developing country. Its ever
came in 1998 when reformation held,their so many demonstration in that year to decrease the
inflation, every student of college colaborated with citizen to held demonstration in so many startegy
places like in front of president office,legislative office,monas etc too told their aspiration and wishes
because they think the soeharto policy is not good anymore. This demonstrasion makes some victim
died,got hurt,and lost their rich especially for chinnese until finally citizen and student college can
broke the soharto policy and made him resign from his job but the coflict not finished yet, because
citizen still not puas. But in the end the inflation in that time had better.

This time inflation controlled by central bank which made policy for the inflation so it could
match with economic inovation. This year number of inflation reach five percent, automatically all of
bank in this country oughto follow this rule because if there is a bank that didnt follow this policy it
cant make chain effort to every particular economic in this country.

Inflation was difficult to learn but, every citizen ough to understand about the inflation
because it really efected to economic of the country. So when the inflation suddenly come we had
prepared and controlled it and the inflation would not be worst.