Inflation in Laos How is Inflation Affecting Livelihoods of Lao People?
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| Format: | Thesis |
| Kulcsszavak: | development economic developement economics economy money |
| Online Access: | http://dolgozattar.uni-bge.hu/47204 |
| Abstract: | ABSTRACT Inflation is one of the most worriedissues which affects heavily on economic growth and livelihoods of people whoare living in a country facing with high inflation. Laos is a land-lockedcountry in the South-East Asia region that is heavily affected by highinflation currently. As the country relies on more imports than exports, therising cost of living due to the high inflation rate has brought seriousimpacts on Lao people’s livelihoods, in particularly, for those are low-incomeearners and the poor. This study attempts to a) examine the change of inflationover the past years in Laos; b) investigate the effects of inflation onlivelihoods of Lao people who are experiencing the high inflation in the firsttime; and c) explore measures or actions that have been taken by the Laogovernment to minimize the effects of inflation on Lao people’s livelihoods inthe country. The research method applied in this study was a qualitativeapproach. Semi-structured interviews, statistical analysis, and documentaryanalysis were used to gather the data. The findings show that for the past tenyears from 2012 to 2022, the Lao inflation rate has started increasinggradually since the last six months of 2021. The inflation rate in December2021 was 5.27% and then the inflation rate has sharply increased to 23.61% inJune 2022 and to 39.27% in December 2022. These numbers hurt Lao people verymuch. People are poorer and face difficulties in their lives. In addition, thefindings from the interviews show that all participants of the research havebeen affected by the high inflation significantly. Because of the highinflation, they have to change their lifestyles in various aspects. They haveto minimize their traveling, well-being, social interaction, etc. In addition,they have to be more careful about their expenditure. They have to tightentheir belts by limiting the number of times in going out, spending moneywisely, and using domestic products. Furthermore, the findings indicate thatthe Lao government has combined three policies for addressing the highinflation issue and other economic difficulties of the country. These includefiscal policy, monetary policy and supply-side policies. Keywords: Inflation, Consumer Price Index(CPI), inflation effects, livelihoods, inflation control, Laos. |
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