ABSTRACT
Inflation has remained one of the
economic predicaments especially in development nation, like our nation Nigeria.
This project was a through research into measures to combat inflation in
Nigeria.
It is to investigate the performance of they have contributed in the Nigeria
economic.
The research used two distinct types of data collection instrument on
the write up. Questionnaire and library research.
The findings of this study was based on the various anti inflation
measures of the Nigeria
government from 1961 to data and presented. Also an appraisal of the out turn
of policy measure.
CHAPTER ONE
1.0 INTRODUCTION
2.0 Webster’s
new collegiate dictionary defined inflation as an increase in the volume of
money and credit relative to available goods resulting in a substantial and
contemning rise in the general price level. I may decide to defined inflation
as an increase in purchasing power of money occasioned by an increase in the
general price level. Following the Webster’s dictionary definition three things
are worthy of note: it recognizes that inflation cannot occur unless;
(a)
There is an increase in the volume of money and
credit.
(b) This
increase exceeds any rise in the available goods and service.
(c)
It leads to a substantial and continuing rise in the
general price level. if we grasp these three elements, we can understand that
whole concept of inflation and they are very easy to grasp if we remember that:
I, this
demand is on goods and services.
11, it is
money and credit which make on demand effective and.
111,
Economic theory tells us that demand increase, supply remains the same, and
price rises. In the light of these basic considerations, we can define
inflation as excess of demand over supply at current prices.
1.1, BACKGROUND OF THE STUDY.
Inflation as we now know, it began in Nigeria during
and after the Nigeria civil war (that is from 1965 to 1970. before the war a
bag of 500 cups of rice cost N14.00, the price went up to N43.00 immediately
after the civil war in 1970. the price fell almost to its pre-war level seven
years later in 1977, between 1973, and 1975, the price of a packet of st,
Louise sugar rise from 20k to 55k, a loaf of bread from 10k to 20k. since 1978
price have been rising steadily and have become the concern of the government
and the Nigeria people.
Finally, inflation has become a household world in Nigeria. It is
no longer some stranger economic jargon to any student. there is handle any Nigeria
citizen who dose not worry about rising
prices and the high cost of living .
1.2,
STATEMENT OF PROBLEM
There have been widespread
complaints of customers not being fairly and conteously treated they approach
manufacturer to benefit from numerous services.
This study will investigate the causes of inflation in Nigeria and
also the measures used in controlling inflation.
Finally, this study will recommend some
of solution or remedies to the inflation.
1.3,
OBJECTIVE OF THE STUDY
The aim of this study is to
determine what study is to all about, that is the causes and its remedies in Nigeria and
also the measures used in controlling inflation.
Firstly, I can say that inflation is a continuous rise in price of goods
and services without a mactchable increase in supply of goods and services.
Secondly, another objective of this inflation, mighty be a way our
nation wants to withdraw excess money in the economy, which is chasing few
goods and services.
Lastly, recently there has been inflation in our nation from the mouth
of June 2003, on oil product; I can classify this inflation in oil as
hyperinflation.
1.4
SIGNIFICANCE OF THE STUDY
The main significance of this study is
to know what inflation is all about or implies and whether it has important.
Initial I have defined inflation as
continuous rise in prices in addition to this; it is too much money in
circulation without being equal to the available goods and service.
Moreover, I can say that inflation has important, the major important of
inflation in Nigeria
is that its helps to bring equilibrium level between available money and
available goods and services in the economy.
1.5 SCOPE
OF THE STUDY
Having defined
inflation, it will be beneficial to discuss of inflation. This depicts that
inflation have inflation have limitation or degrees. One may be reasonable and
conclusively say that rise in prices may be of magnitudes. Accordingly,
different names have been giving to inflation depending upon the rate of rise
in price. Various scope and limitation of inflation are:
1, Creeping inflation: this
refers to a sustained rise in price, which has an annual growth rate of less
30% per annual. This occurs when persistent excess of demand over supply
continues to force up price. Higher price than leads to a demand for rewards
for factors of production, such as wages, interest rates, land values and rents
because of the prospects of increased profit, producer are will to pay these
higher factors prices.
Ii, walking on trotting inflation:
this is a name to a sustained rise in price of goods and service ranging
between 3% to 6% yearly.
Iii, running inflation: it is
obtained when sustained rise in price is about 10% on yearly basis.
Iv, galloping or hyper inflation:
this occurs when monthly increase in price of commodities and services are 20%
or 30% or above. This rate of inflation develops when other rates of inflation
discussed above cannot be successfully controlled this is the worst types of
inflation as it is worsen, people being to loose confidence in the monetary
unit . When this happens, people start to protect these wealth (monies) by good
converting them into physical goods or foreign currency, which increase their
values.
1.6,
DEFINITION OF TERM
As we know that a country’s system of using its resources to produce wealth
is said to be an economy of that country. Then, in a case whereby a country
cannot produce or supply quantity of goods and services that will meet the
demand of it’s citizen’s probably there will be inflation.
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