What is Inflation? Meaning
Inflation refers to a continuous ascension inwards full general toll score which reduces the value of money or purchasing ability over a catamenia of time.
Statistically speaking, inflation is measured inwards terms of a pct ascension inwards the toll index (i.e. pct charge per unit of measurement per unit of measurement time) ordinarily for an annum (a year) or for 30-31 days (a month).
Definition of Inflation
According to Crowther,
"Inflation is a dry reason inwards which the value of money is failing i.e. the prices are rising."
According to Coulbourn,
"Inflation is besides much of money chasing besides few goods."
Features of Inflation
The characteristics or features of inflation are equally follows :-
- Inflation involves a procedure of the persistent ascension inwards prices. It involves rising tendency inwards toll level.
- Inflation is a dry reason of disequilibrium.
- Inflation is scarcity oriented.
- Inflation is dynamic inwards nature.
- Inflationary toll ascension is persistent as well as irreversible.
- Inflation is caused past times excess need inwards relation to provide of all types of goods as well as services.
- Inflation is a purely monetary phenomenon.
- Inflation is a post service sum job phenomenon.
- Inflation is a long-term process.
Terms Related to Inflation
The of import terms related to inflation are equally follows :-
- Deflation : Deflation is a status of falling prices. It is simply the contrary of inflation. In deflation, the value of money goes upward as well as prices autumn down. Deflation brings a depression stage of concern inwards the economy.
- Disinflation : Disinflation refers to lowering of prices through anti-inflationary measures without causing unemployment as well as reduction inwards output.
- Reflation : Reflation is a province of affairs of rising prices intentionally adopted to repose the depression stage of the economy. In reflation, along amongst rising prices, the employment, output as well as income also increase until the economic scheme reaches the stage of sum employment.
- Stagflation : Paul Samuelson describes Stagflation equally the paradox of rising prices amongst increasing charge per unit of measurement of unemployment.
- Stagnation : Stagnation inwards the charge per unit of measurement of economical growth which may hold out a ho-hum or no economical growth at all.
- Statflation : The term 'Statflation' was coined past times Dr. P.R. Brahmananda to clit the inflationary province of affairs of India. According to Brahmananda, Rising prices inwards the middle of a recession is known equally Statflation.
