Inflation is a necessary evil for the development of an economy. Inflation is unavoidable but it must be kept in control.

Inflation is NOT unavoidable. In fact, there have been several recent periods where deflation has occurred.

Inflation is generally a side-effect of a growth-based economy with a fiat currency. Inflation itself can be caused by several factors: a too-fast expansion of the money supply, fluctuation in consumer demand, and changes in supplies of goods or services.

While most people thing of inflation as "evil", the consensus of economists is that a small (<2-3%), consistent amount of inflation is actually "good" - it allows for adjustments in the labor market during small downturns, avoiding recessions, and it avoids a monetary liquidity problem which would cripple a central bank's ability to properly adjust the monetary supply.

In addition, moderate amounts of inflation (5-10%) can also serve a useful purpose: moderate inflation reduces debt loads (as debt fails to accumulate interest faster than inflation reduces the real value of the debt), and encourages spending rather than saving.

That said, without commensurate (or at least moderately similar) rise in income levels, inflation (of any kind) does lower the standard of living of the population.

Mexico is the eleventh largest economy in the world, with a Gross Domestic Product of $2.41 trillion (2017). It is also considered an emerging market, with a GDP per capita of $19,500 (2017), on par to medium-income economies such as Iran ($20,000) or Lebanon ($19,500). Its GDP composition includes 64% towards services, 31.6% to industry and only 3.9% to agriculture.

Unlike other emerging markets, whose economies run on commodities, Mexico has a diversified, manufacturing and export-oriented economy, being an active rival of China for access to the North American, Eastern Asian and European markets. Its exports accounted for $407 billion, and its imports for $417 billion during 2016, setting Mexico as the 12th/13th largest exporter/importer in the world, respectively. The largest Mexican exports include crude machinery and equipment (37%), and motor vehicles and parts (25%), while the largest imports also include machinery and machine parts (39%), as well as motor vehicles and parts (10%).

Some of the largest challenges to Mexico's economic potential include market inefficiencies, corruption and security issues; especially those found in Mexico's southern region which still lags in terms of economic advancement and governance. For example, the state of Oaxaca has the health, education and income of the Sub-Saharan country of Botswana, while Mexico City, capital of the country, has the quality of life of Quebec in Canada, or Aragon in Spain (GDP Per capita: $34,223).

The enormous efficiency of specialization allows the intricate networking of trade among people and nations that we see today. very few of us produce a single furnished good; we make but the tiniest fraction or what we consume we might teach a small part of one college's curriculum, or empty coin from parking matter or separate the genetic material of fruiting files, in exchange of this specialized labor we still receive income adequate to buy goods from over the world.

Advantage economics engage in specialization and division of labor, which increases the productivity of their resources.

ANSWER

Explain what happens if the market price starts too high or too low? i belong to Pakistan so i definitely try to think about the specialization in agriculture because my country has 70% dependency on agriculture... cost of production of agriculture products are far less than other countries... so my area will be agriculture.

the perils of specialization are its disadvantages... in some cases monopolies generated through this type of specialization.

1. For money
2. For peace and order
3. For nice environment
4. For Good Will

Sorry to say but the above answer is completely misleading and incorrect. The major functions of accounting are

1. recording business transaction

2. Classifying and summarizing business transactions in a meaningful manner

3. Analysing and interpreting data in order to retrieve meaningful information.

4. Communicating the information to the relevant stakeholders

So how much is a human life worth? According to research by Stanford economists, a year of human life is worth about $129,000. Wolfram Alpha tells us that the average age of a person named Brad is 35 years, and that the average life expectancy for a human male (worldwide) is about 69 years. Assuming that procuring a loaf of Brad involves cutting down a Brad in his prime, we would be depriving him of 34 years of life - a value of $4,386,000.

Next we must decide if a "loaf" is a unit of volume, or a unit of weight. In the UK, government regulation defines a loaf by weight: 400 grams is a "small" loaf, and 800 grams is a "large" loaf. So let's go with weight, and let's split the difference and assume that we want a medium sized loaf of Brad... that's 600 grams, or about 1.3 pounds.

Since the average weight of a human male is 166 pounds (according to Wolfram Alpha), we can assume that Brad should sell for about $26,421 per pound - which, using our previous loaf weight of 1.3 pounds, sets the price for a loaf of Brad in 2010 at $34,348.

Finally, inflation must be factored in. According to an inflation calculator at westegg.com, what cost $34,348 in 2009 would have cost $8,710.72 in 1975.

Thus, it is safe to say that a loaf of Brad in 1975 could be purchased for $8,710.72.

Additional answers from our users:

• Typical of this site, the answer above is very US-centric, when there is no indication in the question as to where the 1975 Brad was to be purchased.

  Brad - in 1975 - was a rarity in Ireland, and research in the vaults of the Natural History Museum, cross-referenced with the data from the Irish maternity hospitals, show that a loaf of baby-Brad was retailing at £459.25.

  However, as the questioner has not specified if the Brad in question is an adult or a child, we need to cross-reference again, this time with the League of Irish Undertakers. Their files tell us that - at death - the average Brad cost £2,749.37.

  Therefore, the answer to the question depends on how mature the Brad in question is required to be. The maturity/price is a sliding scale.

  This answer - obviously - only applies to Irish Brads.

  When Ireland joined the European Monetary Union, it became illegal to trade in male humans for fun or profit.

• Priceless! - not the loaf, the question!
• And a final word of apology to Brad for any inference that he is a loafer.
• One Pitt without a Jolly (1975).
• We would need to know when in 1975 the loaf of Brad was to be purchased, and where. We would also need to know the number of Brads available at the time of purchase. For example, if the last loaf of Brad were to be purchased from a Brad the day before, we must assume the price of a loaf of Brad would go up (according to the laws of supply and demand).

  From here, there are a few possibilities:

  • The supply of Brads just dropped, and the demand for a loaf of Brad stays the same.
  • The supply of Brads just dropped, but so does the demand, as one family now has a loaf of Brad.
  • It is very difficult to determine the exact price, so just assume that when you travel back in time to acquire this loaf of Brad you'll need (at the very least) $8,710.72.
  • When you return, please tell us how much you had to pay. Buy it at the most available store, so we can get the general retail price.

(If you would like to know the answer to the question "How much was a loaf of bread in 1975?", click on the Related Question below.)