At a given time, there is a certain amount of money in circulation in the society. The cash flow rises and falls to the rhythm of the economic conditions. It depends on the changing domestic and overseas market demands. Loans, credit and liquidity increase the money supply. Foreign capital inflows and outflows exert some influence. In this connection, the government implements its monetary and fiscal policies to sustain the economic growth. It launches an economic stimulus package to tackle a financial crisis before an IMF intervention. The rich wield a financial edge, trade skills, scope of business interest, scale of operations. connections and reach. The poor watch their purchasing power helplessly diminishing also through inflation.
Posted on: Mon, 22 Jul 2013 21:20:07 +0000
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