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ABSTRACT: This work is about inflation in Nigeria, the causes, consequences and how it can be controlled. For inflation to be effectively controlled and for the economy to be conducive for foreign  investors, and hands must be on seek including the governments, manufactures, e.t.c. The book is organized around the main causes of inflation in Nigeria, ie, casual factors of the Nigeria inflation and the related theories, which can also lead to inflation. The first chapter looks at the introduction the statement of the problem the objective the limitation the term the scope and the significance of the study.The second chapter looks at the definition of inflation the three strain of inflation the imposition of higher taxes, development of agriculture, effective control of ways and prices, the control of prices of essential commodities.Chapter three focus on Summary of Findings the Conclusion, the Recommendation and Bibliography.

 

TABLE OF CONTENTS

CHAPTER ONE

1. Introduction                                                                                      9
2. Statement of the Problem                                                                           9
3. Objective of the Study                                                                      10
4. Limitations of the Study                                                                             10
5. Definition of Terms                                                                           11
6. Scope of the Study                                                                                     12
7. Significance of the Study                                                                            12

 

CHAPTER TWO

1. Definition of Inflation                                                                       13
2. Three Strains of Inflation                                                                           14
3. Imposition of Higher Taxes                                                              15
4. Investment in and Development of Agriculture                                15
5. Effective Control of ways and Prices                                                          15
6. Control of Prices of Essential Commodities                                               16

 

CHAPTER THREE

1. Summary of Finding                                                                         17
2. Conclusion                                                                                        17
3. Recommendation                                                                              17

Bibliography                                                                                     19

 

CHAPTER ONE

1.1     INTRODUCTION

          INFLATION

          Considering the high rate at which  prices of goods and services increase in our society today I was moved to pick interest in finding out the causes the consequences, and if possible what should be done to control this social malady called inflation in Nigeria, there are certain ambiguity about the term inflation this because the work indeed has many usages in economic language as there are economists.

          In ordinary speech, inflation is taken to mean a period of high price. But high price do not necessarily indicate the existence of inflation. This is because equilibrium of supply  and demand for goods and services can be established at any level of prices and once equilibrium has been achieved inflation  disappears.

 

1.2     STATEMENT OF THE PROBLEM

          We are going to the problem of inflation and it will be stated out in order to reduce the raise of inflation in Nigeria.

          A number of approaches to the explanation of the phenomenon  of inflation have been suggested and sometime tested in the economic literature thus, such concepts of inflation that have been popularized include “Demand Pull” anticipated inflation.

          The cause of inflation at times could be based on the theories of inflation or caused by some factors, which are sometime considered irrelevant,  more especially in a country like Nigeria.

 

1. OBJECTIVE OF THE STUDY

We are going to consider some of the objective of the study for instants

1. Galloping Inflation
2. Hyper Inflation
3. Martial Inflation

 

1.4     LIMITATIONS OF THE STUDY

          Inflation is a continuous rise in price of goods and services. That is a situation of persistent increase in price of commodities with out a proportionate increase in the supply of the commodities. But inflation can also be known to have a positive effects on the economy of a nation.

          First and foremost, we shall talk about the positive effect.

Positive Effect:     Inflation encourages greater output. Inflation is usually experience during intense economic activities, whatever that is produced, there is usually favourably market for it.

Negative Effects:  Fall in the value of money inflation can lead to loss of confidence in the value of money. Thus some may decide to convert their money to other uses and may decide to spend easily thus worsening the inflationary trend.

 

1.5     DEFINITION OF TERMS

          The term inflation, is used in this sense to describe the credit policy of the central bank of a nation. This he tends to share the view that inflation is a condition when the value of money is declining  (that is when price are rising) , but changes in money supply, however, may or may not affect prices take for instance. If an increase in the quantity of money supply is accompanied by a proportionate increase in the quantity of goods and services available for purchases, then (assume that no change take place in the velocity of money circulation) the general price level will remain unchanged. 

 

1. SCOPE OF THE STUDY

It is a common knowledge that getting to know the major causes of inflation and the problem it bring to a country find out also the purpose of the inflation.

Like in the formation of inflation, therefore some attention has been given to the likely impact of hyper action on inflation addition the overall state of hyper inflation is of great relevance.

 

1. SINGNIFICANCE OF THE STUDY

The study will benefit a large number of people in the society for example.

1. The government: The study will benefit the Government

The Economy in General: This study will be of tremendous benefit to the constituents of the economy by helping each section to make decision in harmony with existing economic trend of a time