INFLATION IN THE UNDERDEVELOPED COUNTRIES

[Wysi]

It's not right to blame the poor or underdeveloped countries if they have an high inflation issue this is because inflation problem can be anywhere and anytime. Inflation is the rate at which the general level of prices for goods and services rises and results in a decrease in purchasing power of a country's currency therefore becoming a poor country is not the only reason of inflation but because  either excess aggregate demand (economic growth too fast) or cost push factors in which rich countries could happen too.

That is not true. Not all of the underdeveloped countries have a high inflation rate. Most of them have a normal range of inflation rate and I don't think that the inflation rate has a factor for them being a underdeveloped country because it depends on the government if they are corrupt or not and if they are doing some projects that can attract investors will eventually boosts their economy.

But in the end, inflation is inflation. I mean even if a country has a low rate of it, still the people will be facing a lot of trouble and therefore, these common people should take some firm steps on their own for the betterment of living standards. These are the countries who need to invest in bitcoin so that they can improve their financial status and enjoy luxuries offered by life. They should stop depending on others.

Regardless of how much they invest in bitcoin and other crypto still the inflation will exist as long as they have corrupt government and people. They need to look into the root cause of inflation and then try eliminating it which require an assurance from both the government and people of the county,  I have researched few common reasons for inflation are dodging taxes, corrupt government, mafia rule which eats up the natural resource of the country.

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[Webetcoins]

It's not right to blame the poor or underdeveloped countries if they have an high inflation issue this is because inflation problem can be anywhere and anytime. Inflation is the rate at which the general level of prices for goods and services rises and results in a decrease in purchasing power of a country's currency therefore becoming a poor country is not the only reason of inflation but because  either excess aggregate demand (economic growth too fast) or cost push factors in which rich countries could happen too.

That is not true. Not all of the underdeveloped countries have a high inflation rate. Most of them have a normal range of inflation rate and I don't think that the inflation rate has a factor for them being a underdeveloped country because it depends on the government if they are corrupt or not and if they are doing some projects that can attract investors will eventually boosts their economy.

But in the end, inflation is inflation. I mean even if a country has a low rate of it, still the people will be facing a lot of trouble and therefore, these common people should take some firm steps on their own for the betterment of living standards. These are the countries who need to invest in bitcoin so that they can improve their financial status and enjoy luxuries offered by life. They should stop depending on others.

Regardless of how much they invest in bitcoin and other crypto still the inflation will exist as long as they have corrupt government and people. They need to look into the root cause of inflation and then try eliminating it which require an assurance from both the government and people of the county,  I have researched few common reasons for inflation are dodging taxes, corrupt government, mafia rule which eats up the natural resource of the country.

Well, I highly agree with you that corruption leads to such problems like inflation and it is the major cause other than illiteracy due to which people cant improve their financial standards. But don't you think that with the invention of bitcoin and altcoins individuals can finally get rid of corrupt governments. They need no more their support and can make good profits that can beat inflation.

[GreenStox]

some countries already have experienced inflation and make their financial condition destroyed, so it's better not to over-develop without thinking about the economic conditions in the country because the most important thing is to stabilize the economy in the country first.

[iMark]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

Is it that the use of natural resources? to make the welfare of the country's society increase? if the government can manage it well, then the country's natural resources can become infinite wealth, look at the UAE, only with the oil wealth they have, almost everyone in their country has a good economy, everything is paid for by the state, schools food and so on. Make their national economy very well.
While in my own country with a lot of gold wealth, but the government is greedy to sell it to foreign countries, and let the company seize the existing gold in our country, our country is only given a tax of 1% of the income owned by that foreign company, very sad indeed.

[Mike Mayor]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

Inflation occurs when the debt of their country mounting up and its same happening all over the world with no difference of developed or developing countries.Only way to reduce the inflation rate is to keep the economic steady so they no need to print more money to pay their debts.And also their economic should more depends on the export rather than importing in my opinion.

Printing out money, which is what causes inflation. A vicious cycle. They should be exporting your right, the only problem is many of the things they need are not available locally and they are forced to import.
There could be greed and government corruption preventing them from exporting their natural resources. That is the only reason I can think of that they would not export. I am not sure you can blame underdeveloped countries for inflation. Look at the US economy.

[JeffBrad12]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

Inflation occurs when the debt of their country mounting up and its same happening all over the world with no difference of developed or developing countries.Only way to reduce the inflation rate is to keep the economic steady so they no need to print more money to pay their debts.And also their economic should more depends on the export rather than importing in my opinion.

Printing out money, which is what causes inflation. A vicious cycle. They should be exporting your right, the only problem is many of the things they need are not available locally and they are forced to import.
There could be greed and government corruption preventing them from exporting their natural resources. That is the only reason I can think of that they would not export. I am not sure you can blame underdeveloped countries for inflation. Look at the US economy.

The lack of good management is to blame for the underdeveloped country, they are exporting resources simply because that's the only way to get money fast otherwise it'd take ages to just extract all the thing and process it themselves. the inflation is I think because the economy of such country is quite fragile therefore it's still dependant on the affection of many major countries out there with strong economy.

[davinchi]

inflation is inflation. I mean even if a country has a low rate of it, still the people will be facing a lot of trouble and therefore, these common people should take some firm steps on their own for the betterment of living standards. These are the countries who need to invest in bitcoin so that they can improve their financial status and enjoy luxuries offered by life. They should stop depending on others.

Regardless of how much they invest in bitcoin and other crypto still the inflation will exist as long as they have corrupt government and people. They need to look into the root cause of inflation and then try eliminating it which require an assurance from both the government and people of the county,  I have researched few common reasons for inflation are dodging taxes, corrupt government, mafia rule which eats up the natural resource of the country.

I am not trying to discourage the use of cryptocurrency, but when it even comes to dodging of taxes, I think cryptocurrency is even the worst tool to use which is why government were even initially against this thinking they will be losing money until they realized also that there is a way that the system can be regulated for them to still be able to get their taxes from cryptocurrency users, and I totally do agree that government are the main catalyst to inflation because of their corruption, and if inflation is really to be ended, it has to start from government controlling the way that they operate first, if the corruption level in the government operation can reduce to the fullest, then there is tendency of inflation even reducing to zero without even involving the use of cryptocurrency.

[Brunus]

Inflation is one of the tools a government has to control its monetary policy.
It is a continuous temptation, because perhaps we do not realize that inflation is a tax in all respects: in fact, by printing paper, the government loses value of the money we have in our hands.
Bitcoin was born precisely against this type of problem.

[Wintersoldier]

Inflation is one of the tools a government has to control its monetary policy.
It is a continuous temptation, because perhaps we do not realize that inflation is a tax in all respects: in fact, by printing paper, the government loses value of the money we have in our hands.
Bitcoin was born precisely against this type of problem.

Basically, it is not just the tax, most of the time, the price of the goods and resources do really become high because of the demand for it. In other reason, we could blame how big is the taxes but if the government and private sectors provide salary which is considerably high to support huge taxes, there's no reason for them to be blamed. Basically, the problem now is how an individual will handle the inflation by himself through the use of decentralized bitcoin cryptocurrency.

[huige007]

inflation is inflation. I mean even if a country has a low rate of it, still the people will be facing a lot of trouble and therefore, these common people should take some firm steps on their own for the betterment of living standards. These are the countries who need to invest in bitcoin so that they can improve their financial status and enjoy luxuries offered by life. They should stop depending on others.

Regardless of how much they invest in bitcoin and other crypto still the inflation will exist as long as they have corrupt government and people. They need to look into the root cause of inflation and then try eliminating it which require an assurance from both the government and people of the county,  I have researched few common reasons for inflation are dodging taxes, corrupt government, mafia rule which eats up the natural resource of the country.

I am not trying to discourage the use of cryptocurrency, but when it even comes to dodging of taxes, I think cryptocurrency is even the worst tool to use which is why government were even initially against this thinking they will be losing money until they realized also that there is a way that the system can be regulated for them to still be able to get their taxes from cryptocurrency users, and I totally do agree that government are the main catalyst to inflation because of their corruption, and if inflation is really to be ended, it has to start from government controlling the way that they operate first, if the corruption level in the government operation can reduce to the fullest, then there is tendency of inflation even reducing to zero without even involving the use of cryptocurrency.

To be very honest, that was a bit painful to hear that crypto currency is the worst tool to use. I really wonder what you think about bitcoin after watching Eric and people of his kind who became rich rather millionaire by spending money on them at right time. No pathetic tool can be this cool. In my opinion, anyone can improve his financial standard by investing in the right coin. The problem of money can be solved at individual levels with ease.

[cotton ball]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

Almost country have inflation by using and adopting their cash money, last ten years with the same amount money you can buy everything, but if you use the same amount money you only buy several kinds, you have use alternative payment to increase your money because you can take inflation and your money value always have higher price.

[Vishnu.Reang]

I am living in a developing country (India) and here the inflation rate is very low (3%). 5-6 years ago, it was going at 13-14%, but the new government managed to bring down the inflation rate by quite a bit. Now some of the analysts are even complaining that the low inflation rate is not good for the economy and this is one of the reasons behind the economic slowdown.

[deisik]

It is a continuous temptation, because perhaps we do not realize that inflation is a tax in all respects: in fact, by printing paper, the government loses value of the money we have in our hands

It seems appropriate to explain why the inflation tax can be quite profitable for some

As the term itself suggests, inflation can be considered as a form of tax, and tax means someone pays it and someone else receives it. In this case, the inflation tax (otherwise known as seigniorage) is paid by the common people while it is received by those who print the money (read, the government). You may rightfully ask here how it is possible as the government doesn't seem to receive anything

But that's not so. Inflation (as in price Inflation) implies the loss of the purchasing power of a currency, and this loss is what the government receives as a gain in its own purchasing power since it can buy anything what can be bought with that new money at old prices not yet adjusted for the inevitable inflation. The point is, inflation doesn't instantly propagate through the economy, so those who have early access to money can take advantage of this

[barabarian1]

in my opinion there are many factors that cause underdeveloped countries to experience inflation. and in my opinion the main factors that cause underdeveloped countries to experience inflation are unstable political and economic conditions and many acts of corruption. if a country's politics are unstable, foreign investors will be afraid to invest in their countries. and this will make the country's economy worse and ultimately cause inflation with the fall of the national currency.

[meliodas]

in my opinion there are many factors that cause underdeveloped countries to experience inflation. and in my opinion the main factors that cause underdeveloped countries to experience inflation are unstable political and economic conditions and many acts of corruption. if a country's politics are unstable, foreign investors will be afraid to invest in their countries. and this will make the country's economy worse and ultimately cause inflation with the fall of the national currency.

Inflation is normal and even the developed countries are experiencing inflation. The people in every countries should get educated about the inflation because it is normal and they should prepare to face it and don't let their money sit inside their bank account because it will only eat their fiat currency alive. They should do investment that the annual interest is above the inflation rate so they can survive from inflation and slowly grow their money.

[koura_cc]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

As long as the world economic structures evolves around fiat money, which is basically created through debt, there's not a big chance to eradicate inflation. And then, you have the fact that you can't have everyone at the top at the same time. The world, and its economy as a consequence, it's not homogeneous, nor do we want it to be. The rise of some will always mean the fall of others, this happens as natural, even without a clear or direct intention behind. Blockchain and crypto can help on making things more balanced and instill new benefits accessible for every, which can have a general improvement. But there's simply no way to make all downsides disappear.

[panganib999]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

Severe inflation is really enormous especially for developing and underdeveloped countries. One reason might be, the country is making a move to counter something that is happeming within the country. For instance, the government of the country is trying to lessen and minimize the usage of cigarretes and tobacco due to the growing number of people dying from diseases caused by it, so their counter action to this is raising it's price. It could have been more better and effective if instead of raising prices, they raise their exporting price if their natural and native products.

[alyssa85]

I am living in a developing country (India) and here the inflation rate is very low (3%). 5-6 years ago, it was going at 13-14%, but the new government managed to bring down the inflation rate by quite a bit. Now some of the analysts are even complaining that the low inflation rate is not good for the economy and this is one of the reasons behind the economic slowdown.

Well done for getting inflation down!

As for the slowdown - there is a global slowdown in place at the moment due to the trade war. The trade war won't end soon, so countries need to find other sources of revenue (domestic spending) to compensate.

[Pearls Before Swine]

What exactly *is* the rate of inflation in 3rd world or developing countries these days?  I know in countries like Venezuela and parts of Africa its too high to even measure, but those are exceptional cases of hyperinflation.  The rest of the world doesn't seem to be experiencing anything even close to that.

Anyway op, inflation affects all countries, all economies, all the time.  Developing countries aren't unique, tho they probably feel the effects more acutely because of higher rates of poverty and unemployment among their citizens.  Last time I checked, inflation in the U.S. was pretty low despite all of that money printing.  Is it really that high in the rest of the world?

[Chaintrader_1]

Check out the strategy of what America and China are doing and which possible effects this can have on Bitcoin
https://youtu.be/JM9a38DQo28