Cash Value Stability and Value Abrasion Fighting

The stability of cash value particularly consumption value is indispensible in all fields of the economic life, the society and the state as a whole. And since money is the benchmark for the determination of the value of anything, so any abrasion of its actual value will have an Impact on the public interest. In addition, this could be a kind of timely or rapid inflation, which is the worst ever; an indication of the state laceration. Yet, it doesn't occur only at war times or natural disasters.

By the end of the course, participants will be able to:

How can the abrasion be fought and cash value is stabilized for as long as possible?
 
Financial inflation means that the money isn't capable of undertaking fairly the required role. On one hand, it's a form of invisible abrasion of purchasing power of monetary assts, causing the deferred payments to be a source of fluctuation and thus injustice to many people. On the other hand, the financial deflation is the opposite of that, it affects some people unjustly, but its impact is less significant than the financial inflation.

The instability of cash value (inflation/deflation) undermines the effectiveness of the monetary system. In addition, it leads to increasing the consumption, reducing savings, creating uncertainty under random economic decisions. And the instability of cash value contributes to the enhancement of speculation, misallocation of resources, as well as discouragement of capital formation. And all that is are the account of the production activity.

Moreover, it's undeniable that the instability of cash value is incompatible with balance. Therefore, the areas which have contributed to the limitation of the instability of cash value or the limitation of inflation further than the deflation, have managed to achieve rates in their economic growth. They have also contributed to their labor preservation, and the increasing of effectiveness and productive investment. In addition, they have minimized the social inequality through achieving the sustainable development in the health of economy.

Accordingly, every state is charged to adopt proper policies in the income and financial field through controlling the wages and prices in order to reduce the instability of cash value and the abrasion of currency value. Moreover, it can be done through fighting those who are seizing the opportunities in order to raise the inflation up to the top of limits and in short times for achieving illicit profits.