،)Inflation( ‫) والتضخم‬Unemployment( ‫البطالة‬
‫) والتوازن االقتصادي‬Fiscal Policy( ‫السياسة المالية‬
The issues of unemployment and inflation of the most important economic phenomena
facing any economy in the world. Vmchklta inflation and unemployment is one of the
key pillars which directs government policies and programs and the government is trying
to always follow the economic policies designed to avoid these problems and reduce the
damage from them. In many cases, facing the governments of countries suffering from
inflation, unemployment, many of the demonstrations and protests against condemning
the government's handling of unemployment or inflation. This chapter addresses the
problems of unemployment and inflation and then deals with the ways in which we can
address these problems.
12.1) Unemployment:
Unemployment can be defined as a compulsory stop for a fraction of the labor force in
the economy to work with a desire and ability to work. What is meant by the labor force
is the number of people able and willing to work with the exclusion of children (under
eighteen years), the infirm and the elderly. For the unemployment rate (Unemployment
Rate) is used the following equation:
Number of unemployed
100 ×
= The unemployment rate
The total labor force
12.1.1) the types of unemployment:
There are many types of unemployment facing the economy and these types:
1 - frictional unemployment (Frictional Unemployment):
It is a temporary cessation of work due to the transition from one job to another, or pause
to search for another job or for study, and so on.
2 - structural unemployment (Structural Unemployment):
Unemployment is caused by the transformation of the economy of the nature of the
specific product to another. He became the Kuwaiti economy, for example to the oil
economy led to the loss of many of the sailors Kuwaitis of their functions are simple and
semi-permanent. However, this kind of unemployment can be overcome by the
acquisition of productive skills required and the nature of training requirements for new
productive economy.
3 - Unemployment periodic (Cyclical Unemployment):
Unemployment is caused by the volatility of aggregate demand in the economy where the
economy faces periods of low aggregate demand, resulting in loss of part of the
workforce of its functions and thus the high rate of unemployment in the economy.
However, this ratio begins to decline when aggregate demand begins to rise again.
4 - seasonal unemployment (Seasonal Unemployment):
Unemployment resulting from a fall in aggregate demand in some sectors of the economy
(and not the economy as a whole). Could see some economic sectors (tourism as a sector,
for example, agriculture or fishing) periods of recession, leading to the loss of workers in
these sectors to their jobs temporarily.
5 - disguised unemployment (Disguised Unemployment):
This does not mean the kind of unemployment and a labor force is unemployed but is the
case in which dispense a given volume of labor without affecting the production process
where there is a kind of accumulation of the workforce in a particular sector are often
paid these workers higher wages than the size of its contribution to the process
productivity.
6 - Unemployment behavioral (Behavioral Unemployment):
Unemployment is caused by the reluctance and refusal to labor force participation in the
production process and engage in certain jobs because of the social outlook of these
functions.
7 - Unemployment imported (Imported Unemployment):
Unemployment, which is facing a part of the local labor force in a particular sector
because of being alone or bring non-local employment in this sector. The economy is
facing this kind of unemployment in the event of low demand for a commodity for
certain high demand for imported goods.
12.1.2) the effects of unemployment:
The effects of unemployment caused by several effects, including economic, social and
even political. It is the economic impact of waste in the great productivity of human
resources untapped and we find also the low level of personal income and the consequent
decline of purchasing power and lower consumer spending and reduced the size of
savings and may result from the recession and a surplus in the total output of the
economy. On the other hand, the social implications of unemployment including the
decline in appreciation of the personal out of work and high crime rates. From the
political side, we find demonstrations by the unemployed and the consequent of
government attempts to address the situation.
12.2) Inflation:
Inflation can be defined as a continuous rise and influential in the general level of prices
in the economy. It can calculate the inflation rate (Inflation Rate) as follows:
‫المستوى العام لألسعار للسنة الحالية – المستوى العام لألسعار للسنة الماضية‬
100 ×
= ‫معدل التضخم‬
‫المستوى العام لألسعار للسنة الماضية‬
It should be noted that inflation should be linked up continuously in the prices of all (or
most) of goods and services in the economy and that this rise in the form of continuous
and long period of time, and not rise temporarily as well as should be the height
influential in the budget of individuals so as to lead the rise in the level General of the
prices to the low purchasing power of individuals.
12.2.1) Ranking Inflation:
Can distinguish between two types of depending on the size and the level of inflation.
The first type is called the moderate inflation (Moderate Inflation) or inflation creeping
(Creeping Inflation) is a simple and moderate rise in the general level of prices so as not
to exceed (10%) per annum. The other type is the hyper-inflation (Hyper Inflation) is a
continuous rise and a high rate in the general level of prices than (10%) and at frequent
intervals.
12.2.2) the types of inflation:
There are different types of inflation and a variety of reasons, including:
1 - inflated demand (Demand-Pull Inflation):
Produces this kind of inflation because of the imbalance in the market in deficit aggregate
supply (AS) to satisfy the aggregate demand (AD), thus increasing the general level of
prices. It should be noted that the high overall level of output prices rise in aggregate
demand will not lead to a decline in demand, but to increase demand and so on.
2 - cost inflation (Cost-Push Inflation):
Inflation is caused by the high cost of factors of production used in the production
process where this increase leads to a continuous rise in the prices of goods and services
produced.
3 - imported inflation 0Imported Inflation):
When the state economy, relying heavily on imported goods and services it will be
vulnerable to imported inflation when the state (or states) Exporting already suffering
from inflation, that inflation is transmitted to the local economy Kriv imported goods and
services.
4 - Joint inflation (Mixed Inflation):
Produces this kind of inflation because of the high purchasing power (as well as the
volume of liquidity) in individuals with the survival of the volume of total output of
goods and services leading to a steady rise in aggregate demand (AD) with the survival of
the overall width constant.
12.2.3) the effects of inflation:
The inflation produced many negative effects on the local economy, it is these effects, we
find low purchasing power of individuals as well as lower the real value of savings and
deposits (especially if the rate of inflation is higher than the interest rate). On the other
hand, inflation is working to increase the prices of locally produced goods, which works
Ally drop of national exports, as well as negative effects on the size of investment in the
national economy and discourage economic development process.