Inflation is quantitative measure of the rate at which the average price level of basket of selected goods and services in an economy increases over a period of time. It is the constant rise in the general price level of prices. The balance of payments may deteriorate because domestic inflation stimulates import spending, given that imports appear relatively cheaper, and dampens export sales, as exports appear more expensive abroad." With reference to the above statement, have the following discussion in form of an essay: Discuss the causes of demand pull, cost push and imported inflation. Discuss four effects of inflation on the Fijian economy. Discuss how the second wave of Covid-19 has impact on inflation and balance of payment in Fiji. Discuss four reasons Fiji is having a prolonged current account deficit. Discuss four policy recommendations Fijian economy could implement to adapt to the new normal or post covid-19 to solve/narrow current account deficit problem.