Vous êtes sur la page 1sur 2

R.

Widiyanto andy nugroho 10312 473

Threat of Inflation in Indonesia


Inflation is a condition where occurred a decline in the value of money. It causes of the price of goods rises. An economic book for SMA and MA 10 grade Alam S author (2006 : 217). In general, inflation occurs because of the money supply more than it necessary. Inflation is an economic phenomenon that never can be eliminated completely. In many cases, inflation is often detrimental. For example is detrimental to people whose fixed income. Inflation makes the real income of people has decreased. I think all of developed countries in the world especially Indonesia must has experienced inflation. In a book seruan bagi ekonom Indonesia Santayana said, if a country does not draw lessons from its mistakes, So that countries will be doomed to repeat again. (2000 : vii) From this sentence can be analyzed that all countries should maintain the value of its currency so as not to has superfluous inflation and will be the most prosperous country in the world. Based on the explanation above, this essay will explain about how to ward off the inflation. An economic book for SMA and MA 10 grade Alam S author, In 1968, Indonesia experienced hyperinflation of 600%. (2006 : 215) This inflation might is occurred because the government made debt to foreign and also did a lot of corruption. To overcome the impacts of this inflation, government conduct monetary policy including Determination of cash supply, which set a money supply of cash in banks. Diskonto, which increase the value of interest rates. Open market operations, which sell securities. Furthermore, government also to conduct fiscal policy including reduction of government spending and raise tax rates. In addition, government also increase production and increase

R.Widiyanto andy nugroho 10312 473

the amount of market goods and set a maximum price for several goods. That is done to reduce the money supply so that inflation can be pressed maximally. Inflation is not always bad for the economy. The Inflation that good managed can increase economic activity and economic development. It may encourage the entrepreneurs to expand their production. Thus, will grow new job opportunities as well as increasing ones income. Therefore, not necessarily the countries that experienced inflation will fall down. For example is a beautiful country, Indonesia. This country can recover inflation and able to rise from adversity. Indonesia can reduce the amount of money circulation by determining the monetary policy and fiscal policy. Although, it is difficult problem, Indonesia can trough this problem and able to rise from adversity. In the short, to combat inflation, government must be clever in dealing with inflation and helped by the society to not commit corruption because corruption also affects so large for inflation. All it must be done, so that inflation can provide benefits to a country of controlled inflation. But otherwise, if not any interference from the government and society, it cant be solved and it will make a country falls on its own mistakes.

Vous aimerez peut-être aussi