Theory apresiasi, depresiasi, inflasi.

inflation theory Broadly speaking, inflation theory is divided into three groups. Each group explains inflation through the point of view is different. * Quantity Theory. Kunatitas theory states that inflation is strongly influenced by the money supply. Departing from Irving Fisher\'s theory, assuming the speed of circulation transactions and output fixed, then the money supply is directly related to price increases. Thus, the greater the growth in the money supply the same. For example, when central banks take monetary policy ith increase the money supply by three times, according to this theory, inflation will also increase by three fold. * The theory of Keynes. According to this theory, inflation happens to a society want to live beyond their means (economically). Inflation process occurs as a process of struggle for sustenance bagian among social groups who want a part that is greater than the bias provided by the community. Inflation process will continue as long as effective demand from all segments of society beyond the amount of output produced by the community. Inflation stops when the total effective demand does not exceed the amount of output available. When the number of effective demand from all segments of society still exceeds the amount of goods available, then the price will rise and inflation will continue to exist. * Theory Structuralists. This theory is put pressure on the rigidity and structure of the economy as was the case in developing countries comes from ketidakelastiasan of supply of goods and services. With a low level of technology, supply can not keep pace with growing demand, for example as a result of rapid population petumbuhan, in developing countries. This imbalance will eventually raise prices and cause inflation. Impact of Inflation In general, it can be said that a few percent a year inflation (inflation is soft) are not harmful, but instead be encouraged the economy because it encourages entrepreneurs to expand production. But if the inflation rate reached more than 10%, then the impact will not be felt. * Fixed Berpenghasila People. People whose income is fixed as permanent employees, teachers, policemen, soldiers, private employees, workers still, retirees, and others. With the inflation, the price of goods will increase while their salaries are not increased. Thus, inflation causes the real income declined due to the amount of salary or wages received will only be obtained fewer goods and services. * People who are Not Fixed-Income. People who do not have a fixed income may not be so affected by inflation because they can ask the following wage inflation. * World Business. Inflation causes the production cost of domestic goods is high, so was unable to compete with imported goods. Moreover, inflation will hamper the development of business and investment capital available karean slumped in value. * Government. Inflation will complicate the government because it can encourage the state budget deficit stemming from interest and mortgage debt pembanyaran country tends to increase. How to Control Inflation Inflation is one of the causes of social unrest and lead to concern the government because it reduces the real income of society. Some policies to tackle inflation are as follows: * Monetary Policy. This policy is a policy derived from the Central Bank in regulating the money supply through monetary instruments owned by banks sentarl. There are three monetary policy can be pursued central bank in managing inflation. * Discount Policy. Policy discount (discount policy) is the Central Bank\'s policy to influence the circulation of money by raising and lowering interest rates. * Open Market Operations. In addition to the discount policy, the Central Bank also runs open market operations (open market operation), ie by buying and selling securities, such as SBI (Bank Indonesia Certificate). Through securities, it is expected also siphoned money from the public. * Fiscal Policy. This policy comes from the government to influence the economy through changes in spending and government revenue. This type of fiscal policy is as follows. * Setting of Government Expenditure. The government must ensure the use of State budget in order after the planning. If expenditures exceed the limits that the State has been determined or planned, will mendororng increment money supply or vice versa. * Increased Tax Rates. Taxes are a major source of state revenue. With the raising of tax rates, then the household income will be given to the government so that people\'s purchasing power for goods and services will be reduced. * Another policy. Monetary and fiscal policy is a policy that is often pursued by central banks or the government in regulating the rate of inflation. Even so, it does not mean there are no other policies that can be done. There are at least three in addition to monetary and fiscal policies that can be taken to achieve the desired inflation rate. * Increased Production. If production increases, although the amount of money increases, inflation does not occur. Even this shows an increase in the ability of the economy. * Wage Policy. Inflation can be overcome by lowering disposable income (disposable income) communities. Decrease in disposable income is done by raising the income tax. * Control of Prices. Tendency of raising prices by entrepreneurs can be overcome by setting maximum prices by the government. However, this action could lead set by the government (black market). To overcome this situation, pendistridusian these items to the public by the government. This was never done on the mass of the old order. Deflation, Devaluation, Depreciation, Revaluai, Appreciation Besides the concept of inflation, there are several other concepts related to prices and government policies. This concept is important to understand because it will be able to clarify the concept of inflation that we have learned and some have occurred in Indonesia. Deflation Deflation is the opposite of inflation. On deflation, the amount of money circulating in the community is too little, while goods and services are available in abundance so that a sharp rise in currency value and increase the role of money can not be avoided. Deflation will affect the expectations that will come and the psychology of the entrepreneur. Deflation process will also affect the decrease in the level of investment which of course will bring trouble for the economy. Devaluation Devaluation is closely related to changes in foreign exchange rates. Devaluation is a reduction in the value of domestic currency against foreign currency (foreign exchange). Devaluation policies undertaken by governments are usually shown to improve the position by a payment that is not balanced. Devaluation policy taken by a State usually first in consult with the International Monetary Fund (International Monetary Fund). Depreciation Devaluation and depreciation is the decrease in the value of domestic currency against foreign currencies. In the devaluation, the decline in the value of domestic currency against foreign currency due to government policy. While the depreciation, the decline in the value of domestic currency against foreign currency occurred not because of government policy, but due to the forces of demand and supply of currencies in the foreign exchange market. Revaluation Revaluation is the opposite of devaluation. So, the revaluation is an attempt to raise the value of domestic currency against foreign currency because the value of domestic currency is undervalued. To date, Indonesia has not experienced a revaluation at all. Appreciation Appreciation is the opposite of depreciation, ie an increase in the domestic exchange rate against foreign currencies in foreign exchange markets. This appreciation would make imports more expensive (in local currency) and exports will be more expensive, so as to increase imports and reduce exports.