Compare the economic performance of Spain and Pakistan in terms of INFLATION from XXXXXXXXXXfor both countries. 5 pages on inflation and works cited page at the end. You are simply comparing and...

Title: The economic performance of Spain and Pakistan
in terms of INFLATION
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Table of Contents
I.    Introduction:    3
II.    Compare and contrast the inflation between Spain and Pakistan (2008-2019)    4
III.    Underlying reasons behind the observed inflation trend in both Spain and Pakistan    5
IV.    Conclusion:    7
I. Introduction:
Inflation rate is defined as the annual percentage change of cost of living as measured by CPI. The calculation of CPI is based on the price of goods and services of a representative basket purchased by the consumers in an economy. Inflation rate is a leading economic indicator that is closely monitored by the central banks or the authorities while setting the monetary policy. Inflation rate is an important macroeconomic variable that has a significant influence on other leading variables that include unemployment rate, interest rate and the exchange rate. Inflation rate provides a deep insight on the economic health of the nation. High inflation indicates a macroeconomic imbalance. On the other hand, a very low inflation for a longer period is not a goof sign of an economy. It restricts the growth prospects of the economy. For a healthy economy, a moderate and stable inflation rate is desirable. (un.org, 2007)
Inflation rate varies across the countries. For low- and middle-income countries, abnormally high inflation remains a key economic challenge. In these countries, higher inflation emerged from huge budget deficit that are financed by printing the domestic currency. While countries like Zimbawe is facing hyperinflation, several low-income countries like Pakistan is struggling with moderately high inflation rate. On the other hand, Spain, Australia is some of the countries in the advanced world that are experiencing very low inflation rate for the last decade. (RiceUniversiry, n.d.)
The key purpose of this study is to compare and contrast the inflation rate between a developing economy Pakistan with a developed economy Spain. It is very important to examine the nature and the cause of inflation so that appropriate policy formulations can be made by the policymakers to maintain price stability in the economy.
II. Compare and contrast the inflation between Spain and Pakistan (2008-2019)
In order to compare the inflation rate between Spain and Pakistan, we have collected the data (2008-2019) from the website of World Bank (WorldBank, 2021).
The data is represented in both tabular form and also in the form of chart:
    Country Name
    Pakistan
    Spain
    Country Code
    PAK
    ESP
    Series Name
    Inflation, consumer prices (annual %)
    Inflation, consumer prices (annual %)
    2008 [YR2008]
    20.286121
    4.075660764
    2009 [YR2009]
    13.647765
    -0.287996835
    2010 [YR2010]
    12.938871
    1.79988133
    2011 [YR2011]
    11.916093
    3.196146412
    2012 [YR2012]
    9.6823519
    2.446000185
    2013 [YR2013]
    7.6921561
    1.408546292
    2014 [YR2014]
    7.189384
    -0.150870313
    2015 [YR2015]
    2.5293282
    -0.500461321
    2016 [YR2016]
    3.7651192
    -0.202671741
    2017 [YR2017]
    4.0853737
    1.956083333
    2018 [YR2018]
    5.0780573
    1.675067615
    2019 [YR2019]
    10.578362
    0.699536242
Source: World bank (WorldBank, 2021)
    The above chart gives the clear indicator that the inflation rate in Pakistan remains far beyond the level of inflation in Spain for all the years considered in the study...