Information

Technology and
Inflation
The Inflation of Information Technology to the Economy

Research Paper By

Traboco , Jupet John T.

BSIT-4th yr.
Information Technology

The information technology (IT) industry has become of the most robust industries in the world.
IT, more than any other industry or economic facet, has an increased productivity, particularly in
the developed world, and therefore is a key driver of global economic growth. Economies of scale
and insatiable demand from both consumers and enterprises characterize this rapidly growing
sector.

According to the Information Technology Association of America (ITAA) explains 'information

technology' as encompassing all possible aspects of information systems based on computers.

Both software development and the hardware involved in the IT industry include everything from
computer systems, to the design, implementation, study and development of IT and management
systems.

However, information technology in other words helps to facilitate a task and gain information
using computers or machines.

Economy and Information Technology

Economies of scale for the information technology industry are high. The marginal cost of each
unit of additional software or hardware is insignificant compared to the value addition that results
from it.

Unlike other common industries, the IT industry is knowledge-based.

Efficient utilization of skilled labor forces in the IT sector can help an economy achieve a rapid
pace of economic growth.

The IT industry helps many other sectors in the growth process of the economy including the
services and manufacturing sectors.
Inflation in Economic Term

Inflation is basically a rise in prices.

A more exact definition of inflation is a situation of a sustained increase in the general price level
in an economy. Inflation means an increase in the cost of living as the price of goods and services
rise.

Importance of Information Technology in Economic Growth

Information Technology is very important in economic growth it plays a great role in a state. Due
to the inflation of information technology many people have been affected. It adds to our everyday
livelihood. Like quick transportation of products and what's more. Continued improvements in
information technology with increasing workforce as it is in demand.

Wesley Powell, Montana State University Class of 2019, Chemical Engineering, Target Associate.
He said, “It has made it easier to pump a lot of money into society. With online, mobile, and more
efficient banking as well as debit and credit cards it is easier than ever for people to spend their
hard earned money. At the same time, it has opened up all new avenues for people to make money
with. People sell online, create technology, advertise digitally, or do a plethora of other things. All
this leads to more money being created and transferred at a much faster pace than ever before. And
as history has shown, the more money that is pumped into society the worse the inflation gets.”
Relationship between Technology and Inflation

Inflation of information technology allows many companies to extend beyond what we know about
technology.

Giving high priority to science and technology, it is recommended that the countries particularly
increase the use of IT in formulating the national educational plans and programs.

To strengthen national institutions in operating in the area of IT, the countries should enhance and
build up their capacities and capabilities to facilitate developing the national science and
technology based on the development.

We know that technology is developing as we progress our technology grows. Its inflationary
relations will not be eliminated or eliminated because inflation in technology will also lift an
economy through innovative technological information.
References

IT Industry, Information Technology Industry http://www.economywatch.com/business-and-

economy/information-technology-industry.html
Helping to Simplify Economics
https://www.economicshelp.org/macroeconomics/inflation/definition/
Quora https://www.quora.com/What-is-the-relationship-between-technology-and-inflation
Mohammad Ali Moradi (Ph. D.) Meysam Kebryaee (M. A.)
https://pdfs.semanticscholar.org/2eb7/70e6307d072ca814a01e0c5bff9c50ec5aa4.pdf