sweetangel
New member
INTRODUCTION
The one Thing, which is rising Week after Week, Mouth after Mouth and which has given the Sleepless Nights to 100 days of Congress Government, which affects from Prime Minister to Common Man. YES, IT IS INFLATION.
(A) MEANING:
Inflation is commonly understood as a situation of substantial and rapid general increase in the level of prices and consequent deterioration in the value of money over a period of time. In other words inflation usually refers to a persistent and rapid rise in the general price level, which reduces the value of money or its purchasing power over a period of time.
(B) DEFINITION:
According to Crowther, “Inflation is a state in which the value of money is falling i.e. prices are rising.”
FEATURES OF INFLATION: -
1. Inflation leads to persistent remarkable and continuous rise in general price level.
2. Inflation is a scarcity oriented.
3. Inflation is a dynamic phenomenon. It is not a state of high prices, but a process of rising prices.
4. Inflation is a state of disequilibria. It involves an imbalance between aggregate demand and aggregate supply.
5. Inflation is a pure monetary phenomenon.
6. Real inflation takes place only after full employment. So it is a post frll employment phenomenon.
7. Inflation is a longer period phenomenon.
The one Thing, which is rising Week after Week, Mouth after Mouth and which has given the Sleepless Nights to 100 days of Congress Government, which affects from Prime Minister to Common Man. YES, IT IS INFLATION.
(A) MEANING:
Inflation is commonly understood as a situation of substantial and rapid general increase in the level of prices and consequent deterioration in the value of money over a period of time. In other words inflation usually refers to a persistent and rapid rise in the general price level, which reduces the value of money or its purchasing power over a period of time.
(B) DEFINITION:
According to Crowther, “Inflation is a state in which the value of money is falling i.e. prices are rising.”
FEATURES OF INFLATION: -
1. Inflation leads to persistent remarkable and continuous rise in general price level.
2. Inflation is a scarcity oriented.
3. Inflation is a dynamic phenomenon. It is not a state of high prices, but a process of rising prices.
4. Inflation is a state of disequilibria. It involves an imbalance between aggregate demand and aggregate supply.
5. Inflation is a pure monetary phenomenon.
6. Real inflation takes place only after full employment. So it is a post frll employment phenomenon.
7. Inflation is a longer period phenomenon.
