Inflation in Indonesia

Topics: Inflation, Economics, Supply and demand Pages: 3 (905 words) Published: November 29, 2012
Article about Inflation
Subject: Economy
Submitted: Thursday, 29 November 2012

ID: 014201000039
Name: Joseph Amos P

President University, Cikarang Baru, Bekasi, Indonesia
Economics is the most important aspect of a country. The reciprocation of a country is seen in terms of economy. Economics also become a benchmark of development and prosperity in a country. Why does the economy become vitally important in a country? The word "economy" you hear about in everyday life and are never separated from our activities. Everything we do from opening the eyes to close my eyes again is inclusive of economic activity. Someone who is able to manage the economy well, it will be seen by other people because of management's ability. Likewise with a country, a country will be seen by other countries through the economy. So what about the Indonesian economy itself? Definition of Inflation

Inflation is the tendency of the general prices for general ascending and continuous or symptoms can also be said of a continued rise in the prices of goods and factors of production general continuously within a certain period. Keep in mind that the increase in the price of one or two items not called inflation. Causes of Inflation, can be divided into

Demand Side Inflation, which is caused by an increase in aggregate demand exceeds aggregate supply increases Supply Side Inflation, which is caused by an increase in aggregate supply exceeds aggregate demand Demand Supply Inflation, inflation is caused by a combination of an increase in aggregate demand which is then followed by an increase in aggregate supply, so prices rise higher into Suppressed Inflation or a cover-up, the inflation at a time will arise and show themselves as the official prices increasingly irrelevant in reality Classification of Inflation

1. Based on the Presence of Severe Inflation
Inflation Lightweight (under 10% a year)
Inflation Medium (between 10-30% a year)
Inflation weight (between 50-100%...
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