The causes and effect of inflation in enugu state economy (a case study of 10 business outfit in enugu urban)

Project Abstract

<p> </p><p>&nbsp; &nbsp; This research work is aimed at finding out the causes, effect and control of inflation in Enugu State Economy, using Enugu Urban as a cause study.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; References from text books were used to obtain information related to inflation as staled by the economic experts. These were used to write the literature review.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Questionnaires were used to elicit information and responses from the sample population.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; The data collected were analyzed using face to face interview and questionnaire because it helps a lot in the area of finding and conclusion.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; From the responses collected, it was observed that the following factors were the major causes of inflation increase in the cost of production, government deficit financing, artificial scarcity wage inducement importation constant agitation of wages increase inadequate education curriculum and planning.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; From the research carried out, it was expressed that the following factors were the effects of inflation in Enugu State economy low value of naira in the international market, money pursuing few goods than services in the economy.</p> <br><p></p>

Project Overview

<p> </p><p><strong>INTRODUCTION</strong></p><p><strong>1.1 &nbsp; &nbsp; BACKGROUND OF THE STUDY</strong></p><p>Inflation is one of the major topics studied in economics. We are engaged in a number of activities from which we earn income. Some people are professionals such as lawyers, Teachers, Engineers, Doctors and Accountants while others are not. There activities are often related to economics activities.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Adam Smith (1978) defined economics as an inquiry into the nature and causes of wealth of nations. To him economics is concerned with wealth making.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; According to H. J. Daveport (1978) economics is a subject that treats phenomenon from the stand point of price. This definition emphases exchanges and seeks to explain that economics deals with things that have a price value which, implies that for any community or services to be of any economics importance, it must have a price attached to it.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Infact the knowledge of economics enables us to give practiced in relation to scarcity and wants and it also enables an individual to take right decision on how to spend his money.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; The changing value of money has important consequences for people and for economics activities.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Inflation can be defined as a condition in which supply persistently fails to keep pace with the expansion of demand.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; Okeke (1987) defined inflation as a continous rise in price. This is to say that we have enough money but when there are not enough goods and services to meet the demands of buyers, the price of goods and services that are found will rise.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; The condition of imbalance between the supply and the demand of those goods will depend on the extent of the rise in the prices of the goods and services. It is a state of disequilibrium in which too much money is chasing few goods.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; According to Eze (1991) inflation could be defined as a condition when the price of goods, production factors and services increased to astronomically. This can happen to the quality of money in circulation is greater than goods and services.</p><p>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; That means that purchasing power is increasing when the quantity of goods and services are not increasing proportionally, making it to general rise in price.</p> <br><p></p>