Inflation In Nigeria Causes Consequence

Inflation In Nigeria Causes Consequence

Chapter One

Preface

Background Of The Study

Affectation can be defined as the continuity rise an prices of goods and service due to the volume of plutocrat in rotation. This is an increase in the plutocrat and credit relative to available goods and service performing in a general price position. In order to observe that there’s affectation there should be a rise in the volume of plutocrat credit. This rise must exceed the available goods and service an the country. There should a the substantial and centurial increase in the gene price position of goods and services.

Rise in prices may be of colorful bulks consequently different names have been given to affectation depending upon the rate of rise in prices. if the prices of goods and service rise this in just saying that the value of plutocrat has fallen because lower goods and service can now be attained in exchange for a given sum of plutocrat. Prices vary equally with the value of plutocrat. The value of plutocrat is this shown by the position of prices a general fall in process indicates rise on the value of plutocrat. The price of a commodity is the quantum of plutocrat that has to be paid for it. The value of plutocrat is the quality of goods and service it’ll buy. The request price is the index of relative value of goods and service in terms of plutocrat.

Statement Of Problem

Despite the fact that affectation increase investment which creates employment of product coffers and hence lesser affair there are suggestions that discourager savings thereby adding the threat of holding raw each and reducing the value of plutocrat affectation will lead to a fall in the burden of public debt by making a fixed debt quantum to lose its purchasing power.

During inflationary ages the value of plutocrat which is the purchasing power of plutocrat Falls affectation increase the earnings of business share holders and other whose income are fixed in plutocrat terms but inspite of these there are complained that it reduced the standard of living of the people whose income are fixed therefore adding their cost of education weal and culture installations available. This situation still makes it delicate for the poor millions with fixed income delicate to survive in the frugality.

Affectation will also lead to a balance of payment deficiency. The rise in the prices of home goods will make further consumer goods to be imported thereby making the county to spend further foreign currency that what it’ll entered abroad from exportation. still since the real value of plutocrat fall during inflationary period people prefer to spend it rather than investment. Also debtors gain while creditors lose because the burden of debt falls and the plutocrat loses its purchasing power.

Ideal Of The Study

The study embraces the causes consequences and control of affectation in the Nigerian frugality. The negative effective of affectation has indeed remained a stagnant towards the profitable development. still the main ideal of the study are as follows

To fund out the causes of affectation in the Nigerian frugality.

To known its influence on the Nigeria frugality

To determine to a great extent how affectation affect an frugality

To fund out the means and give possible result that can be espoused in working the problems of affectation in the Nigerian frugality

The study will also educate the millions on the need to minimize the problem associated with affectation in a shot to have an profitable smash rather of doom.

To give suggestions on how to checks affectation through governmental agencies and individual

Significance Of The Study

The significance of the study will be of immense significance to the following groups

The experimenter

To other experimenters.

To the central bank of Nigeria

To the government and the public at large.

To the experimenter it’ll enable her to gain the award of ordinary public parchment{ OND} and other experimenters will use it as companion and base down discussion of their exploration work. The significance of the study to the CBN is to understand and strengthen our profitable programs to check the inflationary trend in the country. This study will also enable the citizens acclimate to the demand of profitable programs which are geared towards funding a continuing result to these affectation so as to promote profitable programs that favour our nation.