“How do age structure and fertility rates impact population dynamics in developing countries?”
The most important negative effects of inflation arise from reduction in purchasing power. Inflation can reduce the value of our money by a huge amount, making it even more difficult to purchase the things we want and need. Knowing how inflationary prices affect our purchasing power is an aspect ofRead more
The most important negative effects of inflation arise from reduction in purchasing power. Inflation can reduce the value of our money by a huge amount, making it even more difficult to purchase the things we want and need. Knowing how inflationary prices affect our purchasing power is an aspect of financial knowledge, and this skill will help us perform better in managing our money.
An influx of money into the economy from the macroeconomic point of view leads to inflation. Since there will be more money, it reduces the value of each and every unit of currency. This in turn increases the prices of the commodities and services by the reduced value of the money. Therefore, the money can purchase fewer goods and services than it could in the past.
Inflation and purchasing power-At the level of the individual, experiences vary from one person to another with the variables like income, expenses, and lifestyle.
Here’s how inflation may affect your purchasing power:
1. Savings: Because of time, inflation can gradually reduce the value of your savings. For example, imagine having $1,000 worth of savings, and the inflation rate is 3%. After one year, the value of your savings will have shrunk to $970.
2. It is more expensive to maintain living standards due to higher costs of living: With rising prices of goods and services, it becomes harder to achieve the same standard of living, thus reducing the quality of life.
3. Low returns: Inflation will also affect the return on investment. Let’s assume you invest in a bond yielding 2%, and you have a rate of inflation of 3%. This means you are losing money on your investment.
Understanding how inflation affects the purchasing power is extremely important in financial decision-making. In other words, having an understanding of inflation will enable people to think ahead and adjust their strategies because they will be able to realize early if the cost of living will continue to rise or not.
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Age Structure and Fertility Rates: Managing Demographic Change in Developing Nations Of all the demography characteristics, age and fertility influencing population development in developing nations are crucial factors. Age Structure: Youth Bulge: They are a resource that if given a large populationRead more
Age Structure and Fertility Rates: Managing Demographic Change in Developing Nations
Of all the demography characteristics, age and fertility influencing population development in developing nations are crucial factors.
Age Structure:
Youth Bulge: They are a resource that if given a large population of young people can cause fast overpopulation therefore a lot of demands on the available resources and development infrastructure.
-Aging Population: Few births you have correspond with higher level of dependency of the aged as people age thus implying a higher number of the aged and those who will be being supported by working population.
Demographic Dividend: The time when a majority of the population is in the working population. In such a case economic growth and development is possible if there is investment in education, health and employment.
Fertility Rates:
High Fertility Rates: Problem of providing basic needs such education, health and employment in areas of rapid population growth due to high fertility rates will arise.
One could slow the rate of growth of the population and leave it in its old age. It has advantages and disadvantages – on one hand less resources are being used, on the other hand – economic issues may arise.
It is influenced by fertility rate meaning it is associated with several effects that a country can go through on the social, economic and environmental front. For instance, high fertility population that happens within the youthful population may find it difficult to facilitate education and health facility while the aged people require much investment on the social security and health services.
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