lets know about inflation..............

1. INFLATION ANALYSIS
By: Meenakshi and Priyanka

2. CONTENTS
 Definition
 Types of inflation
 Theories of inflation
 Effects of inflation
 Measures to control inflation

3. DEFINITIONS
 “The word inflation in the broadest possible
sense refers to any increase in the general
price-level which is sustained and non-
seasonal in character.”– Peterson
 “Inflation is an increase in the quantity of
purchasing power.”– Gregory
 Inflation is the stage of too much money
chasing too few goods.”-- Coulbourn

4. TYPES OF INFLATION
On the basis of degree of government
control:-
 Open inflation
 Suppressed inflation

5. TYPES OF INFLATION
On the basis of political condition:-
 War time inflation
 Post-war inflation
 Peace time inflation

6. TYPES OF INFLATION
On the basis of magnitude or rate of
Inflation:-
 Creeping inflation
 Walking inflation
 Running inflation
 Hyper inflation

7. TYPES OF INFLATION
On the basis of scope:-
 Sectoral inflation
 Comprehensive inflation

8. THEORIES OF INFLATION
There are two theories related to the causes
of inflation:-
 Demand Pull Inflation
 Cost Push Inflation

9. DEMAND PULL INFLATION
 Definition:- “According to Demand pull
inflation, the general price level rises
because the demand for goods and services
exceeds the supply available at existing
price.”--- Sharpio
 Causes:-
1) Quality theory of money
2) Keynesian theory
3) Modern quantity theory of money

10. COST PULL INFLATION
 Definition:- “Cost push inflation is the
consequences of rise in cost. It is
characterized by insufficiency of aggregate
demand, unemployed resources and excess
capacity”– A.S.Compgana

11. EFFECTS OF INFLATION
 Effects in debtors and creditors
 Effects on investors
 Effect on fixed salaries class
 Effects on saving
 Effect on employment
 Effects on banks

12. MEASURE TO CONTROL INFLATION
 Monetary measures
 Fiscal measures
 Other measures