Sample Essay on Inflation as an Issue of Public Finance

Inflation as an Issue of Public Finance

Public finance issues have seriously affected the global economic development. One of the issues of public finance that has caused uproar and debates in a good number of organizations across the world is inflation. This is the continuous and sustained increase in the prices of services and commodities in a particular market over certain duration of time. To begin with, a good number of organizations, to be specific, private organizations, have had challenges while trying to curb the high inflation rates. Thus, it will be noted that there is market inefficiency among the global private organizations. The inefficiency in this case is that the organizations have not come up with any strategies or ways of ensuring accurate pricing of their goods and commodities.

Curbing inflation is a difficult task that needs fantastic strategies, together with all the entrepreneurial stakeholders across the globe. Bringing together all entrepreneurial stakeholders across the world is close to impossible. Therefore, this leaves the possibility that the private market will never succeed in internalizing the problem of inflation. Ever since the problem was experienced in the global market, the private market has not internalized it adequately. This is because inflation not only affects the entrepreneurs but also the customers, hence, the customers also need to be involved in helping internalize it, a task which has been very hard to accomplish.

The stakeholders with an upper hand in solving the problem of inflation are governments of countries across the globe. The interventions of governments will help curb the menace. For instance, the governments should come up with regulations and policies that control or regulate the prices of commodities and services. This will ensure that selfish persons do not increase prices with the aim of benefitting themselves.