1、1 中文 2640 字 本科毕业论文（设计） 外 文 翻 译 外文出处 Springer-Verlag Berlin Heidelberg,2008,173-182 外文作者 Cengiz Kahraman,Tufan Demirel,and Nihan Demirel 原文 ： Effects of Inflation under Fuzziness and Some Applications Abstract:This chapter presents the ways of incorporating the parameter fuzzy inflation to the engine
2、ering economy analyses. Inflation is a financial parameter difficult to estimate. The fuzzy set theory gives us the possibility of converting linguistic expressions about inflation estimates to numerical values. In the chapter, discounted cash flow techniques including these fuzzy expressions and so
3、me numerical examples are given. The obtained results show the interval of the worst and the best possible outcomes when fuzzy inflation rates are taken into account. 1 Introduction Inflation is an increase in the amount of money necessary to obtain the same amount of product or service before the i
4、nflated price was present. With the inflation in anytime prices rise and the purchasing power decreases, it takes more dollars for the same amount of goods or services. Deflation is the opposite of inflation. It has the oppositeeffects, with deflation prices decrease and the purchasing power increas
5、es. With the deflation, it takes fewer dollars in the future to buy the same amount of goods or services as it does today. The governments can be face to face with the inflation much more commonly than deflation at national economy (Blank and Tarquin 2002,Sharp-Bette and Park 1990, Degarmo et al. 19
6、90, G.nen 1990, Young 1993). 2 Most people are undoubtedly aware that inflation has to do with price increases. What is perhaps less well-known is that the meaning of the word inflation has changed somewhat over time. Originally the word inflation was used to describe a characteristic of money that
7、its value was eroded. This happens when all prices in an economy rise at the same rate over time. When all prices rise at the same rate,households incomes (for example wages) increase as much as their expenses. This means that households have to pay more for the same quantity of goods. However,neith
8、er household consumption nor its actual value (utility) is affected when all prices rise at the same rate. Over time, however, the meaning of the word inflation has changed somewhat. Today it is often used synonymously with the words price increase and can there by describe any kind of price rises,
9、not just increases in all prices. For example, one often hears of wage inflation, domestic inflation or imported inflation. None of these terms mean an increase in all prices. Rather, they refer to rises in the prices of certain specific goods or services. The most common and most well-known measure
10、 of inflation is the change in the consumer price index - the CPI. The CPI is a so-called cost-of-living index or compensation index. This means that the CPI measures how consumers cost of living changes over time. If consumers incomes increase at the same rate as their cost of living, their utility
11、 will be unchanged over time. The CPI is often used for exactly this purpose - as a basis for adjusting pensions or determining how compensation clauses in different agreements should be interpreted. To adjust for the effects of inflation in project evaluation, most authors prefer to use a general i
12、ndex, such as the Consumers Price Index. The reason is as follows: Since it is the investors real income or purchasing power that we seek to enhance,there is a slight advantage in choosing an index of Consumer Goods prices such as the CPI. The changeable value of currency is the reason of inflation.
13、 With the inflation the currency value goes down. The inflation and deflation can be occurred as higher prices for food, cars, and other purchased commodities and services for the people. 3 On the other hand for the business and government, inflation has eroded the purchasingpower of savings and ear
14、nings, if interest rates and salary raises have not kept pace with general price trends. Inflation types are shown below: Cost push inflation: Increases in producers costs that are passed along to customers,sometimes with disproportionate escalations that push prices up. Demand-pull inflation: Exces
15、sive spending power of consumers, sometimes obtained at the expense of savings that pulls prices up. When the literature is searched, we can see that there are few works on fuzzy inflation.Kahraman and Tolga (1995) examine the effects of fuzzy inflation rate on aftertaxrate calculations. De and Gosw
16、ami (2006) present an EOQ model with fuzzyinflation rate and fuzzy deterioration rate when a delay in payment is permissible. 2 Relation between Inflation and Interest Inflation affects everyone with some degree. The degree of inflation affects the consequences when inflation is mild, the economy pr
17、ospers. When inflation is moderate,increased demand pulls prices still higher. When inflation is severe, prices rise much faster than wages do. When inflation is hyperinflation (this is the most dangerous level of inflation), this uncontrolled inflation destroys a nations economy (Park2006). Hyperin
18、flation is a problem in countries where political instability, overspending by the government, weak international trade balances, etc., is present (Sharp-Betteand Park 1990). When the government has inflation in its economy, first of all it pays attention to credit restrictions, wage controls, contr
19、action of the money supply, reduction in demand by raising taxes, increased demand by reducing taxes, enlarged supply of goods through greater productivity stimulated by investment incentives and wage-price guidelines backed by political persuasion to manage inflation and its effects on the economy (Park 2006). On the other hand the government can redefine the currency in terms of the currency of another country, control banks and corporations, and control of the flow of capital into and out of the country in order to decrease inflation(Sharp-Bette and Park 1990).
