Development plan

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First factor that I would try to improve is the inflation rate, which is relatively high in Finland, and due to taxes the prices are more expensive than for example here in the United States in general. Inflation means that the general level of prices for goods and services is rising and the purchasing power is falling subsequently as a result of inflation. (investopedia.com) The inflation rate slowed down in March 2014 to 1,1%. (Finland´s national authority for collecting statistics) This is a big improvement, because it was 2,2% in 2013 (The World fact book). Policies to lower inflation should be improved in order to slow down the increase of the prices and the money losing its value, and one way to affect the inflation is also moderate the levels of unemployment, because it allows companies and retailers to lower the prices of goods and services. Hiring more people, which also decreases unemployment, or utilizing the raw materials in a more efficient way are ways to increase supply and make it meet the demand so that it won´t increase prices. Sometimes prices increase as a result of the production costs increase. Lightening taxes, when businesses can take down their prices, or affecting the competition in the market with regulations can avoid this. Government should not print too much money, and this hasn´t been a problem in Finland for a while. Still, if it starts to be a problem that there is too much money going around, the Central Bank can increase the interest rate, and as a result of that people won´t take as many loans. This might lead to higher unemployment for a while, and it is hard to find the happy medium between these two, but in the long run the economy will improve, because decreasing the inflation rate increase... ... middle of paper ... ... work force increase each worker can be more productive, increasing incomes in general and for all. Finally, to achieve a stronger economical growth, consumers need to save and invest their money, permitting businesses to invest more in capital goods. Investing the resources into building the economy will create future economic growth; production will increase and consumers will have more goods and services to purchase in the market. Expanding the output will lead to higher standard of living in the whole country. Despite the discussed points of improvement in Finland, it is one of the economically most stabile countries in the Europe, and the monetary stability has been well maintained and planned for the future as well. By taking all the aspects and little factors in notice, Finland has potential to become even wealthier nation and a better place to live.

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