O slideshow foi denunciado.
Utilizamos seu perfil e dados de atividades no LinkedIn para personalizar e exibir anúncios mais relevantes. Altere suas preferências de anúncios quando desejar.
Presented By: Muneeb Ahmed
INFLATION
 Inflation is defined as a sustained increase in the
price level or a fall in the value of money.
 When the le...
Types of Inflation
1. Creeping Inflation
2. Walking Inflation
3. Galloping Inflation
4. Hyperinflation
5. Stagflation
6. C...
Creeping Inflation
Creeping or mild inflation is when prices rise
3% a year or less. That's because this mild
inflation se...
Walking Inflation
This type of strong, or pernicious, inflation is
between 3-10% a year. People start to buy
more than the...
Galloping Inflation
When inflation rises to 10% or greater, it
wreaks absolute havoc on the economy.
Money loses value so ...
Hyperinflation
Hyperinflation is when the prices skyrocket
more than 50% - a month. It is fortunately
very rare. In fact, ...
Stagflation
Stagflation is just like its name says: when economic
growth is stagnant, but there still is price inflation. ...
Core Inflation
The core inflation rate measures rising prices
in everything except food and energy. That's
because gas pri...
Wage Inflation
Wage inflation is when workers' pay rises faster than
the cost of living. This occurs when there is a
short...
Demand Pull Inflation
This occurs when Aggregate demand (AD) increases at a
faster rate than Aggregate Supply (AS). Demand...
Cost Push Inflation
This occurs when there is an increase in the cost of
production for firms causing aggregate supply to ...
Inflation & Types of Inflation
Próximos SlideShares
Carregando em…5
×

Inflation & Types of Inflation

Inflation & Types of Inflation

  • Entre para ver os comentários

Inflation & Types of Inflation

  1. 1. Presented By: Muneeb Ahmed
  2. 2. INFLATION  Inflation is defined as a sustained increase in the price level or a fall in the value of money.  When the level of currency of a country exceeds the level of production, inflation occurs.  Value of money depreciates with the occurrence of inflation.
  3. 3. Types of Inflation 1. Creeping Inflation 2. Walking Inflation 3. Galloping Inflation 4. Hyperinflation 5. Stagflation 6. Core Inflation 7. Wage Inflation 8. Demand Pull Inflation 9. Cost Push Inflation
  4. 4. Creeping Inflation Creeping or mild inflation is when prices rise 3% a year or less. That's because this mild inflation sets expectations that prices will continue to rise. As a result, it sparks increased demand as consumers decide to buy now before prices rise in the future.
  5. 5. Walking Inflation This type of strong, or pernicious, inflation is between 3-10% a year. People start to buy more than they need, just to avoid tomorrow's much higher prices. This drives demand even further, so that suppliers can't keep up. More important, neither can wages. As a result, common goods and services are priced out of the reach of most people.
  6. 6. Galloping Inflation When inflation rises to 10% or greater, it wreaks absolute havoc on the economy. Money loses value so fast that business and employee income can't keep up with costs and prices.
  7. 7. Hyperinflation Hyperinflation is when the prices skyrocket more than 50% - a month. It is fortunately very rare. In fact, most examples of hyperinflation have occurred when the government printed money recklessly to pay for war. Examples of hyperinflation include Germany in the 1920s, Zimbabwe in the 2000s, and during the American Civil War.
  8. 8. Stagflation Stagflation is just like its name says: when economic growth is stagnant, but there still is price inflation. Why would prices go up when there isn't enough demand to stoke economic growth? It happened in the 1970s when the U.S. went off the gold standard. Once the dollar's value was no longer tied to gold, the number of dollars in circulation skyrocketed. This increase in the money supply was one of the causes of inflation.
  9. 9. Core Inflation The core inflation rate measures rising prices in everything except food and energy. That's because gas prices tend to escalate every summer, usually driving up the price of food and often anything else that has large transportation costs.
  10. 10. Wage Inflation Wage inflation is when workers' pay rises faster than the cost of living. This occurs when there is a shortage of workers, when labor unions negotiate ever-higher wages, or when workers effectively control their own pay. Of course, everyone thinks their wage increases are justified. However, higher wages can cause prices of the company's goods and services to rise.
  11. 11. Demand Pull Inflation This occurs when Aggregate demand (AD) increases at a faster rate than Aggregate Supply (AS). Demand pull inflation will typically occur when the economy is growing faster than the long run trend rate of growth. If demand exceeds supply, firms will respond by pushing up prices.
  12. 12. Cost Push Inflation This occurs when there is an increase in the cost of production for firms causing aggregate supply to shift to the left. Cost push inflation could be caused by rising energy and commodity prices.

×