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We Must Look For Solutions to Deflation in Economics Before the Damage Is Beyond Control

Oct 28th 2014 at 12:24 AM

The economy of our country has a huge power in shaping our lives. Now that with the advent of the internet the world has become a global village. Even the economies of various countries have become interconnected. It becomes very important to know about the economy. It is believed that sooner or later there would be a deflation in the local economy. The US Dollar index has been on the rise. The US dollar index is nothing but measure of the value of the United States dollar relative to a basket of foreign currencies. This means that the US dollar has gained more value when compared to other currency. Though this seems as a positive thing, this might led to deflation of the US economy. The primary cause of this is as the USDI increases, imports become cheaper than the native products, so this in turn favors the neighboring countries that imports rather than the local region, this leads to deflation. We must look for Solutions to Deflation in Economics before it becomes a serious problem.

Another major problem that the global economy faces is that Bankruptcies Skyrocket each day. This is major problem especially in developing countries. But then this affects globally as well. Proper framing of economic rules and regulations could keep this in control, never the less if this issue is left unnoticed then in the future there is a huge toll to pay for this.

The Wall Street is always busy and the stock market always on the high. The DOW points meets an up and a down every now and then, today it goes down by say 250 points tomorrow it comes up again with 300 points. The ups and downs affect the investors and the buyers. This has always been the buyer’s remorse. It’s not always the money one makes; it is the wealth one makes out of the stock market.

Sudden fluctuations in the stock market, sudden inflation followed by unexpected deflation and stuffs like these could lead to a broken market. A broken market is a serious threat to the economy. The cause and effect of a broken market follows a vicious circle, one thing leads to another and things get interconnected. Conscious moves must be made in such a scenario.

The economy profoundly influences the progress of mankind, so it is absolutely necessary for stability in economy for sustained progress.

Author Bio:

The Author is a management student and is an avid reader of business news that includes US and IRS. He is learning about Solution to Deflation in Economics and Buyer’s remorse.

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