Determinants of High and Continuous Inflation Rates in the United Arab Emirates: A Managerial Point of View

Abstract

Inflation has become serious and argumentative problems for most developed countries. The impact of these concerns derived from various sources, each of which may bring about diverse effects on economic activity in general. Among different countries, United Arab Emirates as one of oil-dependent country has an extremely particular involvement as far as inflation. Economy of UAE has experienced occasions of high (2006-2008) and low (2010-2011) regimes of double digit inflation for more than decades. With the price precariousness, a consistent and tenacious increment has been found to influence financial development, way of life similarly the value of the currency, which thusly impacts the country’s conversion standard. The purpose of this paper endeavors to clarify the determinants that subsidize extensively to inflation in the UAE. The methodology utilized as a part of this examination depends on interpretive strategy which derived from perception and through evaluation of literatures relating to the subject matter. The investigation was finished by analyzing, examining and selecting of data systematically and objectively in order to gather collated information. The findings uncovered inflationary pressure influences UAE organizations is through the principle parts of consumer price data. In addition, this paper additionally expected to have a wide understanding to the implementation of management strategies, including contractionary fiscal and monetary approaches to diminish the money supply and ultimately the spending in the country.