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Presentation CRISIS INTER Inflation .pptx
1. Inflation
• Inflation refers to substantial and rapid increase in
the general price level.
• it's Cause decline in purchasing Power and value of
money.
According to crowther.
• "Inflation is a state in which the value of money is
falling
• i.e, prices are rising "
2. Causes of inflation:
Factors Causes Inflation are
• Increase In Demand:
• Increase in public Expenditure.
• Increase in private Expenditure .
• Reduction in taxation .
• Repayment of public Debt.
• Rapid growth of population.
4. Types of inflation
On the basis of Rate of Rise in Price:
• I) Creeping Inflation:
When price rises less than 3% per year.
• ii) Walking Inflation :
When price rises from 3 to 4% per year .
• iii) Running Inflation :
When price rises by more than 5 to 9% in a year.
5. Types of inflation
• iv) Galloping inflation:
When the price rises by more than 10 % or more in a year.
• V) Hyperinflation:
When the price rises by 100% in a year.
• vi) Demand-pull inflation:
When the aggregate demand in an economy strongly
outweighs the aggregate supply, prices go up.
6. Types of inflation
• vii)Cost push inflation:
When overall price increase (inflation) due to Increases in the cost of
wages and raw materials.
• viii) Stagflation:
Persistent rise in Price.
Unemployment
No consumer.
• ix) Deflation:
general decline in Price for goods and services.
Due to reduced money supply, or demand.