Inflation CaseEssay Preview: Inflation CaseReport this essayThe issue of inflation has been gripping the attention of many citizens through-out the country. The media continues to report on the impacts of inflation in our economy. Therefore, it is of great importance that one has a clear understanding of this economic term since we are all confronted with this saddening reality.
Inflation can be described as a situation whereby there is a sustained increase in the general level of prices for goods and services. Therefore, as inflation rises, every dollar you own buys a smaller percentage of a good or service. This is certainly a reality within the context of the economy of Trinidad and Tobago.
Citizens continue to plead with the government to step in and mitigate the effect of this silent tsunami that is swallowing up the lower class in our society. The basic food items in the supermarkets are now becoming of the reach for many. These items include rice, flour, sugar, milk among many others
The government has stepped in to deal with this economic dilemma however many have given the policies of the government a failing grade. They believe that that these policies have not borne substantial fruit and therefore citizens continue to receive financial blows due to inflation.
The Patrick Manning administration has decided to tackle the issue of inflation from the supply side. To this end, there has been the establishment of several mega farm throughout the length and breathe of Trinidad. The Government has also appointed a high-level Ministerial Committee to accelerate the implementation of decisions agreed to at the National Consultation on Food Prices held in August 2007 The agreed package of measures includes new funding arrangements as well as fiscal incentives for farmers and the establishment of several large state farms. Additionally, the government sought advice for the Cuban government so as to achieve success in this endeavor. The hope of the government is to expand the supply of food items in the country thereby driving the prices of food prices in a downward direction. This is because as supply increases the prices for this good will fall, this is a basis economic theory. It is well established that food prices is labeled as the main
t that are dependent on the availability of the natural or economic material resources. The government has established a Food Price Monitoring Service (FAKST) with a national average price (or “price”) of 7.75-5 for the crops it is prepared to produce. This will be made possible using an international database of more than 20,000 crops, but it is also being planned in order to better inform farmers over an extended period of time. In addition, it has placed a large quantity of wheat, maize and rice into the FAKST database by the end of January 2011 and a smaller amount by the middle of the year. The initial plans included developing a system of monitoring the crop prices as they were determined by the FAKST so as to “prevent” inflation. This will continue to be the case, but the FAKST system is different to that of the current system since it is able to directly monitor prices of the more than 20,000 crops currently imported, while it does not have the capability of “knowing” how long the crop may be in a market for its production. This system would allow the government to monitor over a relatively short period of time.
The first official project to implement the FAKST was by the State of Cuba Agricultural Marketing Authority (CARPAF), the principal organiser in the promotion of corn. The project was launched because of a strong opposition from the government. Since the arrival of the government in 2002, the CARPAF was trying unsuccessfully to convince the government to adopt the same idea. During its four years of success, the CARPAF received a number of reports from different departments, and it has now created a comprehensive list of crop varieties that it is making available to farmers. In 2006 the Ministry of Agriculture announced the creation of three new types of crops: corn, soybean, and wheat. Since then the CARPAF has tried to convince the government to adopt these crops, and the state agriculture ministry has also announced that it intends to release corn to the new crop types in 2019. It has been stated that the crops are also designed to reduce overall production costs by reducing crop failure rates compared to other fields. The CARPAF has also created the Food Price Control Center and Food Cost Management (NFMC) which are now being used to monitor the price of rice. As far as I know, there are no reports confirming the status of any new crop product in Cuba.
The State of Cuba Food Prices Monitoring System: A new System Invented By the National Consultation on Food Prices held in August 2007 This new system will be aimed at monitoring prices, and may be implemented in phases. The aim of this system is to improve the quality or stability of the crops and to create opportunities for consumers for their money. Currently, the system operates by measuring the quantities and production volumes that are already being produced. The system determines the cost of the goods produced by the farmer. If it is unable to determine the final price, it gives the consumer the option to pay a higher price. After obtaining such information the farmer can then go into the farmers market for some goods. The system also monitors consumer demand for agricultural staples such as fruits, vegetables and nuts, and is also able to show the number of plants planted, the quantity of crop varieties grown, the total amount of food produced and price of vegetables and their derivatives. When the farmer decides it is economical to pay and does not want to pay a higher price to buy from another farmer, the system may be activated. The new system will have an operational price for the goods that it produces in the area. The system can then be accessed online. For now the system was initially intended for the private sector, although recently some farmers in other parts of the country have added other sectors within the system as the market opens up to the public. However, there is still a need for an additional 3.75 million hectares of farmland in the country through the use of this system. Currently farmers are allowed to only buy