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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 "
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.
Factors
• Shortage of supply.
• Hoarding by traders.
• Hoarding By consumer.
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.
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.
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.
Presentation CRISIS INTER Inflation .pptx

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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.
  • 3. Factors • Shortage of supply. • Hoarding by traders. • Hoarding By consumer.
  • 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.