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Inflation: Strategies for Mitigation and the Economic Impact of Increased Productivity


While many despise inflation, it is unavoidable in life and investing. Inflation is a natural result of the economy’s expansion and contraction (Hilmola 618). Inflations of varying magnitude have occurred throughout history, from the 16th Century price revolution, fueled by gold and silver sized and mined by Spaniards in Latin America, to Hungary’s largest paper money inflation after World War II. The COVID-19 pandemic and the Russian-Ukraine war have made inflation the center stage of discussion in the current world. In the aftermath of the COVID-19 pandemic in 2022, inflation hit 8.5%, its highest level since 1882 (Ahmad 5). The nightmare associated with this menace can be eradicated by effectively implementing vital economic strategies. Inflation is a situation in which the prices of commodities rise tremendously within a short period (Peersman 90). Based on evidence from credible sources, a proposal of how inflation can be mitigated and the merits associated with deflation are documented

Statement of Purpose

I prose that each organization increases its productivity and output levels as a viable technique to curb this menace. This shall symbolize the effectiveness and efficiency of the local companies and how the firms contribute to the general economic growth.

Plan of Action

For inflation to be eliminated in the long run, organizations must reduce the wastage in their production processes. This can be achieved by having competent staff and automating production processes (Peersman 87). Moreover, the manufacturers can implement the Just in Time technique to ensure that just the right quantity of materials required at the right time and place is within the organization. Consequently, reducing production costs will further reduce the cost of final products.

Furthermore, organizations should organize training programs to equip their personnel with relevant skills that can be used to improve the organization’s productivity. For instance, technology change requires well-organized training programs for the personnel to know and understand how the new technology operates (Hilmola 618). This shall enable the organization to be up to date with the new technology in the current corporate world and integrate the technologies in their day-to-day operations to increase productivity (Ahmad 6). Subsequently, increasing output levels, thus resulting in low prices of products in the marketplace.

Benefits of Inflation Proposal

The economy becomes more stable and predictable when inflation is successfully controlled. This allows organizations to anticipate their expenses and pricing more accurately, leading to increased profitability and competitiveness (Peersman 90). Businesses can invest in growth, research and development, and other strategic projects with less inflationary pressure. Furthermore, consumers benefit from stable prices since it increases purchasing power and helps to retain consumers’ trust.

Moreover, having a 0% inflation rate might encourage investment by increasing economic stability and predictability (Hilmola 618). Firms and individuals may make long-term plans with greater certainty since future prices and returns on investment are more predictable when inflation is low. Increased corporate investment, economic expansion, and job creation all result from curbing inflation. A country’s currency’s purchasing power can be preserved when inflation is kept at the bare minimum (Alvarez et al. 451). This can benefit consumers and companies by keeping prices relatively consistent over time.

Viability of Inflation Proposal

Automating manufacturing processes by purchasing heavy machinery is only one approach for businesses to boost efficiency (Peersman 87). Organizations can use modern technology to improve productivity and streamline operations by leveraging machine learning and artificial intelligence, making the proposal attainable. Furthermore, giving opportunities for training and growth, cultivating a healthy work environment, and encouraging collaboration and effective communication among team members can all contribute to higher productivity (Ahmad 5). Organizations can maximize productivity and success using several tactics adapted to their goals and needs.

Besides, improving productivity is not just critical for an organization’s long-term performance; it may also immediately influence profitability and competition. Organizations can achieve this by implementing various tactics, such as process optimizations and personnel development (Hilmola 618). These initiatives can be time-bound and concentrated, with quantifiable targets and milestones to track success. Firms that make a concerted effort to improve productivity can reap benefits such as turnaround times, better quality, increased efficiency, and ultimately, market success and profitability.

Desired Outcome

Low inflation can provide a country’s economy with a major boost by making its exports more competitive on the global market. Lower inflation means that the prices of products and services produced in the country remain consistent, which can help to keep production costs low and, as a result, make export more affordable. Businesses can sell more items worldwide, consequently increasing revenues and profits. This can also encourage foreign investment and boost economic growth (Ahmad 3). Subsequently, making the country gains a competitive advantage in the global economy.

If inflation is strong, the cost of goods and services rises quickly, reducing the purchasing power of low-income people. This exacerbates income disparity and makes meeting necessities difficult for people with fewer financial resources. Low-income people’s buying power may be maintained by keeping inflation stubby, helping to lessen income inequality and create more economic stability (Alvarez et al. 455). This emphasizes the need to develop efficient inflation-mitigation policies, such as increasing the firms’ productivity to guarantee that economic expansion benefits are distributed more equally across all sections of society.

Necessary resources

To successfully complete my investigation, I need adequate and competent human resources that shall help me in the data collection process. Moreover, I need financial help to facilitate my movements as I conduct the research (Peersman 85-100). In addition to the two resources I have mentioned, I would need technological resources that I will utilize to analyze and interpret data so that I may present accurate data for a review. These resources shall ensure my research is reliable and timely bound in the long run.

Skills for successful completion

As a good planner and organizer, I shall ensure the project is concluded at the stipulated time frame and the report is delivered on demand for evaluation. Moreover, I shall ensure the questions in the questionnaire are free from biases and are very précised and easy to understand. This shall enable the respondents to be responsive. As a result, it enables me to collect accurate data.


Some schools of thought have argued that a certain degree of inflation is required to support economic growth. When prices rise, firms may raise their investments in capital and infrastructure, which can boost productivity and production (Alvarez et al. 455). While moderate inflation can drive economic growth, it is not a long-term sustainable plan. High inflation can cause uncertainty and instability, decreasing investment and economic growth (Ahmad 8). Furthermore, inflation’s pros are not dispersed evenly, with low-income households bearing the brunt of the negative repercussions. Maintaining low inflation and encouraging measures that promote long-term growth can help to create a more stable and fair economic environment.


Inflation is an enemy of progress to the general growth of a country. Due to this, it should be eradicated through executing strategies like increasing the productivity of the organizations. This can be realized when the organization their production processes. This mitigation factor is viable since the firms can easily procure the required resources when they do strategic sourcing and budget to purchase the items. Subsequently, reducing the prices of the commodities and creating exports to be more competitive in the global marketplace. The assets essential for this venture’s fruitful conclusion include human, technological, and financial resources. For the stability of a nation, inflation is a threat that should be eradicated.

Works Cited

Ahmad, Tariq. “A Case of Pakistan Investigating the Relationship between Inflation and Economic Growth: A Case of Pakistan.” Acta Pedagogia Asiana 1.1 (2022): 1-8.

Alvarez, Fernando, et al. “From hyperinflation to stable prices: Argentina’s evidence on menu cost models.” The Quarterly Journal of Economics 134.1 2019: 451–505.

Hilmola, Olli-Pekka. “Inflation and Hyperinflation Countries in 2018–2020: Risks of Different Assets and Foreign Trade.” Journal of Risk and Financial Management 14.12 2021: 618.

Peersman, Gert. “International food commodity prices and missing (dis) inflation in the euro area.” The Review of Economics and Statistics 104.1 2022: 85–100.


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