first of all we all will find world is reeling under pressure for money and certainly not for real goods and services at comfortable levels. that means subsidies over subsidies will increase, that means inflation will grow step by step, meaning soon to increase pressure on money supply preferentially, perennially.
That is the big story of inflationary economics.
Kaushik basu as world bank economist may say allow inflation.Soon countries will face music when inflation becomes stagflation.
Economists pay with paper money , like match box labels bundles.
One things will certainly cause the demand to chase supply of commodities and goods while their supplies will just grow in arithmetical progression while demands will grow in geometrical progression.
see for example people will buy cars more than the capacity of roads to allow traffic and soon you need to build more infrastructure of roads, bridges and then you will engage highway police petrol and for it you will have to put electric poles to provide lights in nights as nights cannot be banned at all. Electrical energy will have to be increased to provide energy which in turn will increase consumption and electrical energy generation has to be augmented by opening nuclear power stations with the help of nuclear thermal power plants and for which you need uranium and you have to procure uranium. For running stations you need highly qualified operators and engineers/scientists and the have to be paid suitable remuneration. yea you need more high level generation of higher educational standards universities and colleges and like this the story goes on meaning more and more paper currency pumped in without supporting resources.. that way in almost every area of activities,like 'Kaupeena samrakshana' perennially .
you will find no end how will you contain inflation. i look for super intelligent to say how he will contain inflation!
That is the big story of inflationary economics.
Kaushik basu as world bank economist may say allow inflation.Soon countries will face music when inflation becomes stagflation.
Economists pay with paper money , like match box labels bundles.
One things will certainly cause the demand to chase supply of commodities and goods while their supplies will just grow in arithmetical progression while demands will grow in geometrical progression.
see for example people will buy cars more than the capacity of roads to allow traffic and soon you need to build more infrastructure of roads, bridges and then you will engage highway police petrol and for it you will have to put electric poles to provide lights in nights as nights cannot be banned at all. Electrical energy will have to be increased to provide energy which in turn will increase consumption and electrical energy generation has to be augmented by opening nuclear power stations with the help of nuclear thermal power plants and for which you need uranium and you have to procure uranium. For running stations you need highly qualified operators and engineers/scientists and the have to be paid suitable remuneration. yea you need more high level generation of higher educational standards universities and colleges and like this the story goes on meaning more and more paper currency pumped in without supporting resources.. that way in almost every area of activities,like 'Kaupeena samrakshana' perennially .
you will find no end how will you contain inflation. i look for super intelligent to say how he will contain inflation!
No comments:
Post a Comment