Inflation

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PANNASASTRA UNIVERSITY OF CAMBODIA
SILA SAMĀDHI PAÑÑĀ

I University of Cambodia
Pannasastra NFLATION
Sila

SamādhiPaññā

Course Title: Fundamentals of Economics
Professor

: Dr. Meng Channarith

Prepared by: Sun Sokhet, Phal Keomorokod,
Im Meng and Chuop Vichet

INFLATION

Course Title: Fundamentals of Economics
Professor: Meng Channarith

April 09, 2013

CONTENTS
Acknowledgement .....................................................................................................................ii Introduction .............................................................................................................................. iii Chapter One: Nature of inflation ............................................................................................... 1 1.1. Definition.................................................................................................................................. 1 1.2. Inflation measurement ............................................................................................................ 1 Chapter Two: Types of inflation ................................................................................................ 4 2.1. Demand-pull inflation ............................................................................................................. 4 2.2. Cost-push inflation .................................................................................................................. 5 Chapter Three: Impacts of inflation ........................................................................................... 7 3.1. Redistribution income and wealth......................................................................................... 7 3.2. Loss of export competitiveness ............................................................................................. 8 3.3. Less investment confident ...................................................................................................... 8 3.4. Problem in monetary system.................................................................................................. 8 3.5. Sufferers from inflation .......................................................................................................... 8 Chapter Four: Dealing with inflation ......................................................................................... 9 4.1. Monetary policy....................................................................................................................... 9 4.1.1. Open-market operations ................................................................................................. 9 4.1.2. Reserve requirements ..................................................................................................... 9 4.1.3. Discount rate .................................................................................................................... 9 4.2. Exchange rate policy ............................................................................................................... 9 4.3. Fiscal policy ........................................................................................................................... 10 4.4. Physical policy ....................................................................................................................... 10 Chapter Five: Inflation in Camboida ....................................................................................... 11 Conclusion ................................................................................................................................ iv Bibliography .............................................................................................................................. v

i

ACKNOWLEDGEMENT
We would like to express our sincere gratitude to Dr. Meng Channarith, professor of Fundamentals of Economics course, for his intelligent guidance and...
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