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Originally Posted by Ayan
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Hello Ayan.. as Patty said, this is not the place to be posting "spam". If you really want to practice using the posting features, please go here:
CE - Newbie Training Center - CrazyEngineers Forum
Back on topic. Mayurpathak, can you enlighten us with the break up of how companies controlling oil will suffer? I'm pretty curious
Regarding the inflation.. besides the supply and demand function you've mentioned, one of the reasons why different countries show different rises in prices is government intervention (eg subsidies, policies, trade barriers etc). The government can decide whether basic commodities should be subsidized for the benefit of the common citizen, like rice and petrol. They can only do that if they have a budget surplus (or at least minimal deficit) or very large foreign reserves.
If you subsidize a certain commodity, complementary goods related to it will not suffer inflation. The opposite is true too.. if petrol prices are rising without government intervention, costs of transporting food will rise too, and so on.
They might also want to tax imports from other countries which sell cheaper goods than your country so that the local industries is protected.
Thus, priorities and budgets can vary country to country. The priorities can change depending on the state the economy is in too.. whether they are still developing, etc. Quite a number of factors involved.
Maro, hows the food prices there now? I saw on the news a while back about the crisis with the bread supply. Still the same situation?