What is Inflation? Meaning
Inflation refers to a continuous ascent inwards full general toll marking which reduces the value of money or purchasing ability over a menstruum of time.
Statistically speaking, inflation is measured inwards terms of a pct ascent inwards the toll index (i.e. pct charge per unit of measurement per unit of measurement time) unremarkably 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 every bit follows :-
- Inflation involves a procedure of the persistent ascent 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 ascent is persistent in addition to irreversible.
- Inflation is caused past times excess need inwards relation to render of all types of goods in addition to services.
- Inflation is a purely monetary phenomenon.
- Inflation is a transportation service amount job phenomenon.
- Inflation is a long-term process.
Terms Related to Inflation
The of import terms related to inflation are every bit follows :-
- Deflation : Deflation is a status of falling prices. It is but the reverse of inflation. In deflation, the value of money goes upwardly in addition to 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 in addition to reduction inwards output.
- Reflation : Reflation is a province of affairs of rising prices intentionally adopted to relaxation the depression stage of the economy. In reflation, along amongst rising prices, the employment, output in addition to income also growth until the economic scheme reaches the stage of amount employment.
- Stagflation : Paul Samuelson describes Stagflation every bit 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 last a dull or no economical growth at all.
- Statflation : The term 'Statflation' was coined past times Dr. P.R. Brahmananda to depict the inflationary province of affairs of India. According to Brahmananda, Rising prices inwards the middle of a recession is known every bit Statflation.
