SUMMARY OF CHAPTER TWO
In this chapter entitled « Theoretical and
conceptual framework on the general level of prices and its main
determinants », we started by defining the price determinants
referring to economic theories. The money is defined as the legal instrument of
payment used to facilitate the exchange activity. We showed its functions,
regulations and monetary policies related to the control of currency in
circulation.
We showed also some theoretical aspects on GDP and the price
index used to measure the general level of prices.
Finally, in this chapter we identified some causes,
consequences and remedies of inflation issue in Rwanda.
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