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THE EFFECT OF INFLATION ON INCOME AND WEALTH DISTRIBUTION OF THE NATION

Format: MS WORD  |  Chapter: 1-5  |  Pages: 69  |  232 Users found this project useful  |  Price NGN3,000

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THE EFFECT OF INFLATION ON INCOME AND WEALTH DISTRIBUTION OF THE NATION

 

ABSTRACT

Having looked at the present trend in the Nigerian economy it is very obvious that price of items has continued to raise especially food related items. A special reference will be on the impact of inflation in income and wealth distribution of the nation (A case study of Enugu state). The work is divided into five chapters one focused on the introduction and definition of the problem presented by the study chapter two dwelt on the review of related literature. Chapter three is all about research design and methodology formed of the research work. Chapter analysis of data as well as testing of hypothesis while the summary of findings, recommendations and conclusion were death with in chapter five.

 

CHAPTER ONE

INTROUDCTION

1.1   BACKGROUND OF STUDY

Inflation is neither new in the economic system of Nigeria nor the world at large.  Variations in magnitude or rates have been noticed to be in existence. In Nigeria the rate of inflation was about 10 percent between 1969 and 1970. Prices rose by about 14 percent in 1970 (immediately after the civil war of 1970).  Then fell to 3 percent in 1972. Rose by about 16.1 percent in 1974 and reached a rate of about 34 percent increase in 1975.

In the 80’s, the rate of inflation between 1908 and1982 was around 30 percent with the rest of the 80’s at the rate of 40% averagely. The 90’s were at the rate of 40 to 50% between 1990 to 1992 and then 1994 rate was officially put at above 60 percent.  Inflation was and is still the greatest task to government’s policymakers in the 1990’s.

In the world, between 1979-1801, prices rose by more then 50 percent. Also between 1939-1941, the prices level was record to be almost what it was before. The height of Herry V111’s debasement in England (through the mint reducing the weight of remitted coins, lowering their gold and silver content, and increasing the normal value of existing coins by assigning them higher values as well as melting down plate and ornament taken from the ransacked monasteries), and prices between many 1542 and mid 1551, had an inflationary rate of 16 percent per annum 23 percent during war with France and almost 30 percent during the first world war.This is about the highest rate attained in the world history.

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