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  • Inflation & Deflation: Impact On Economy

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    Chandra Prakash Gupta
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    This document discusses the impacts of inflation and deflation on the economy. It defines inflation as a general increase in price levels and decline in the value of money. Deflation is defined as a general decline in prices, often caused by a reduction in the supply of money or credit. The types of inflation include creeping, walking, running, galloping, and hyper inflation. Causes of inflation include increases in the money supply, credit expansion, deficit financing, and scarcity. Effects of inflation impact debtors, creditors, consumers, producers, farmers, and taxpayers. Deflation can decrease employment and cause people to hold on to money rather than spend.

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    This document discusses the impacts of inflation and deflation on the economy. It defines inflation as a general increase in price levels and decline in the value of money. Deflation is defined as a general decline in prices, often caused by a reduction in the supply of money or credit. The types of inflation include creeping, walking, running, galloping, and hyper inflation. Causes of inflation include increases in the money supply, credit expansion, deficit financing, and scarcity. Effects of inflation impact debtors, creditors, consumers, producers, farmers, and taxpayers. Deflation can decrease employment and cause people to hold on to money rather than spend.

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    Attribution Non-Commercial (BY-NC)
    Скачайте в формате PPT, PDF, TXT или читайте онлайн в Scribd
    Отметить как неприемлемый контент
    9 просмотров15 страниц

    Inflation & Deflation: Impact On Economy

    Загружено:

    Chandra Prakash Gupta
    This document discusses the impacts of inflation and deflation on the economy. It defines inflation as a general increase in price levels and decline in the value of money. Deflation is defined as a general decline in prices, often caused by a reduction in the supply of money or credit. The types of inflation include creeping, walking, running, galloping, and hyper inflation. Causes of inflation include increases in the money supply, credit expansion, deficit financing, and scarcity. Effects of inflation impact debtors, creditors, consumers, producers, farmers, and taxpayers. Deflation can decrease employment and cause people to hold on to money rather than spend.

    Авторское право:

    Attribution Non-Commercial (BY-NC)
    Скачайте в формате PPT, PDF, TXT или читайте онлайн в Scribd
    Отметить как неприемлемый контент
    из 15

    Inflation & deflation

    impact on economy
    By Anand Kumar tiwari Raushan Kumar (mba iv sem) Amity business school

    Inflation & Deflation impact on economy

    Major outlines

    Introduction Definition Types of Inflation/deflation Causes of Inflation/deflation Effects of Inflation/deflation Inflation Vs Deflation

    Introduction
    Prices 2008 commodity Prices 1956

    Rs.15/kg

    rice

    0.30/kg

    Rs.12/kg

    wheat

    0.25/kg

    300/kg

    almond

    3/kg

    8/kg

    potato

    0.20/kg

    intro
    Situation of rapid general increase in price level. Decline in the value of money.

    Definitions:
    According to crowthers inflAtion means a state in which the value of money is fAlling i.e. prices Are rising. According to pigou inflAtion Arises when money income is expanding more than proportionate to income eArning Activity.

    According to prof. sAmuelson Inflation occurs when general level of prices & cost Are rising.

    Types of inflation
    Creeping inflation
    Walking inflation Running inflation

    Galloping inflation
    Hyper inflation

    Cont
    Demand pull inflation:
    Due to high GDP and low unemployment.

    Supply shock inflation:


    due to adverse change in price of

    raw materials ( like oil).

    Built in inflation:
    induced by expectations based on

    previous inflation levels.

    Causes of inflation
    Increases in money supply.
    Expansion of bank credit. Deficit financing. Black money. Scarcity. Taxes. Population growth.

    Effect of Inflation
    Debtors and creditors.
    People with fixed income. Consumers . Producers and businessman. Farmers. Tax payers and government.

    Deflation
    A general decline in price often caused by a reduction in the supply of money or credit. Deflation can be caused also by decrease In government , personal or investment spending. Deflation has the side effect of increased unemployment.

    Causes of deflation
    Decreasing money supply.
    Increasing supply of goods. Decreasing demand of goods. Increasing demand for money.

    Effect on economy as well as our self


    Inflation affects you directly when you go to the grocery store but find that a hundred dollars doesn't get you the same amount as it

    did last year. Many people hang on to their money & stop spending on many non-essential items because of fear. Houses & Cars begin to depreciate.

    Cont
    Business starts to dry up & employers find themselves cutting down on staff.
    Our fixed income gets depleted & we find

    ourselves having to survive on even less. The quality or standard of life that many have grown, downgrades as a direct result of inflation.

    Thank you
    :by:
    Anand Kumar tiwari Raushan Kumar

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