A Reaction Paper: Creating Value Out of Inflation
Tubeo_Roselie.Reaction on the Article: Creating Value out of Inflation.Feb 25, 2014
The article on Inflation of Prof Mansibang is optimistic and unconventional rather than lauded with cynicism and hopelessness, than most articles relating to it are commonly discoursed.
It defines inflation in a simple, yet crisp, terms that anyone without a college degree could comprehend, well at least my 12-year old son did when I asked him to explain to me what that second paragraph meant. He said, after reading, that it’s like a literally inflated boy that couldn’t do anything much because he is too heavy but not with real nutritious nourishments but with air. Simply put, there’s an illusion of fullness but no real value, as the sixth paragraph immensely disclosed. You can imagine my elation when I finally got a theme to this reaction paper – Inflation in the eyes of a child.
Come to think of it, when Prof Mansibang guilelessly enumerated the different factors affecting inflation – ‘business inefficiencies, unbridled politics…’ and my favorite, ‘unconscionable graft and corruption and virulent peace and order situation’, a simple non-educated individual could succinctly say that these factors are just around the corner and are within the controls of the people actually running it.
Aside from the allegory of the bloated boy, as cleverly narrated by my son, symbolically pointing to Nominal Profits but less value, Prof Mansibang also hit home the other major impact of inflation in business such as ‘increased cost of financing, diminished value of financial assets, higher tax implication and changed norms and behaviour’ all modestly but precisely written. I understand that he is limited in space and time but I’m sure that with this luxury available, he will be more than happy to cite simple examples to drive down the point more congruently and comprehensibly.
The most interesting thing that caught my attention in the article that made me write the first paragraph in
The article on Inflation of Prof Mansibang is optimistic and unconventional rather than lauded with cynicism and hopelessness, than most articles relating to it are commonly discoursed.
It defines inflation in a simple, yet crisp, terms that anyone without a college degree could comprehend, well at least my 12-year old son did when I asked him to explain to me what that second paragraph meant. He said, after reading, that it’s like a literally inflated boy that couldn’t do anything much because he is too heavy but not with real nutritious nourishments but with air. Simply put, there’s an illusion of fullness but no real value, as the sixth paragraph immensely disclosed. You can imagine my elation when I finally got a theme to this reaction paper – Inflation in the eyes of a child.
Come to think of it, when Prof Mansibang guilelessly enumerated the different factors affecting inflation – ‘business inefficiencies, unbridled politics…’ and my favorite, ‘unconscionable graft and corruption and virulent peace and order situation’, a simple non-educated individual could succinctly say that these factors are just around the corner and are within the controls of the people actually running it.
Aside from the allegory of the bloated boy, as cleverly narrated by my son, symbolically pointing to Nominal Profits but less value, Prof Mansibang also hit home the other major impact of inflation in business such as ‘increased cost of financing, diminished value of financial assets, higher tax implication and changed norms and behaviour’ all modestly but precisely written. I understand that he is limited in space and time but I’m sure that with this luxury available, he will be more than happy to cite simple examples to drive down the point more congruently and comprehensibly.
The most interesting thing that caught my attention in the article that made me write the first paragraph in