Please enable JavaScript.
Coggle requires JavaScript to display documents.
Economics Mind-map, How inflation affects the economy, How employment…
Economics Mind-map
High inflation
In Indonesia, 58% inflation in 1958
-
-
Because of the increase in inflation, this can cause high interest rates as well. Making a lot of people to borrow money from the bank or their friends too.
Inflation Rate in Indonesia averaged 9.50 percent from 1997 until 2020, reaching an all time high of 82.40 percent in September of 1998 and a record low of -1.17 percent in March of 2000.
When theres high inflation, theres more likely for poverty to increase
4 types of inflation
-
-
-
Hyperinflation
Extremely high rates of inflation that result in money failing to be good store of value & becoming virtually worthless
-
Low inflation
Indonesia recorded inflation of 2.72 percent in 2019, the lowest level in around two decades, thanks to lower inflationary pressure from government-regulated prices, Statistics Indonesia (BPS) announced on Monday. Administered prices recorded 0.51 percent inflation, drastically lower than 3.36 percent in 2018.
-
Indonesia's annual inflation rate dropped to 1.54 percent in July 2020, the lowest since May 2000 and below market expectations of 1.66 percent, as restriction measures imposed by the government to halt the rapid spread of COVID-19 led consumers to stay at home.
Uses of price indices
-
Indexation: to index-link income payments – purchasing power increases at the same rate as inflation
-
-
-
High Unemployment
-
-
High unemployment makes it bad for the economy because most people would have no jobs because of Covid-19.
-
Unemployment Rate in Indonesia averaged 6.05 percent from 1982 until 2018, reaching an all time high of 11.24 percent in the third quarter of 2005 and a record low of 2 percent in the fourth quarter of 1983.
Low unemployment
Indonesia example
-
Economy is growing
-
-
When products are made, it doesn't stop but always been made deliberately
-
From the aritcle is says that during the course of Suharto's New Order, economic development added many new jobs to the Indonesian economy, thus pushing down the nation's unemployment rate. Especially the industry and services sectors experienced major increases in their employment shares towards national employment, at the expense of the agriculture sector: whereas in the 1980s around 55 percent of Indonesia's working population was concentrated in the agricultural sector, recently this figure has declined to below 40 percent.
The unemployment rate dropped to 5.01 percent in February from 5.13 percent in the same month last year, according to new Central Statistics Agency (BPS) data released on Monday.
-
-
-
-