"Inflation" Essays and Research Papers

INFLATION It can be stated that Inflation is the rise in prices of products as a result of the increase in the quantity of money. This definition however would be inefficient since for two reasons; 1. If we simply term inflation to be a rise in prices of certain products then we will be mistaken because prices might be rising in one sector of the economy yet falling in another sector. 2. We have to take into account that the process may be high this month but generally fall the following month...

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INFLATION The government control measures, all over the world, keep business cycles under control. What has gone nearly uncontrolled over the time is the problem of almost continuous increase in the general price level (this is the problem of inflation). The problem of inflation got accentuated since the early 1970s. It emerged as the most intractable economic problem for both theoreticians and policy-makeovers all over the world. Inflation has been a common problem of the developed and the developing...

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Inflation “Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.” Central banks endeavour to put an end to grave inflation, along with drastic deflation, striving to keep the extravagant growth of prices at the lowest level. For example, if there is 5% inflation in a specific country and the price of sugar is usually £3, it will spontaneously escalate from £3 to £3.15. Every government’s tries to keep a low...

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 Objectives: How is inflation measured The calculation and limitations of these indices The effects of inflation Important points to remember: Consumer Price Index (CPI) - A measure of price changes in consumer goods and services such as gasoline, food, clothing and automobiles. The CPI measures price change from the perspective of the purchaser. GDP Deflator- measures price changes in current year compared to those in a base year, for all goods and services produced within the country...

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INFLATION - ITS CAUSES and ITS EFFECTS ON VARIOUS SECTORS ON INDIA - September 2nd, 2010 WHAT IS INFLATION Defination:  Inflation is defined as the rate at which the general level of prices for goods and services is rising and subsequently purchasing power is falling Measures of Inflation Inflation is measured by calculating the percentage rate of change of a price index, which is called the inflation rate.  Consumer price indices Cost of living indices Producer price indices...

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Latest news Inflation remains a serious concern in India with the Consumer Price Index (CPI)-based inflation rising for the fifth consecutive month in February. At 10.9% from a year ago, consumer price inflation in India is the second highest among major economies—we still have some way to go before we can challenge Venezuela. Prices in the food, beverages and tobacco segment went up 13.4% from a year ago, a 33-month high. Vegetable prices have shot up 21% year-on-year. Core CPI inflation (ex-food...

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Inflation affects the real economy in two specific areas: it can harm economic efficiency, and it can affect total output. We begin with the efficiency impacts:- Inflation impairs economic efficiency because it distorts prices and price signals. In a low inflation economy, if the market price of a good rises, both buyers and sellers know that there has been an actual change in supply and/or demand conditions for that good, and they can react appropriately. By contrast in a high inflation economy...

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Major Cause of Inequality.“The origin of inflation is often found in the panicky nervousness of unstable governments in politically unstable communities. Given political stability there is no reason why India should not be able to carry out her future plans without generating serious inflationary pressure on the price level.” Keeping 1960-61 as the base year, the Fourth five year plan save the price index at an all time high of 331 in September 1974 (with 1961-62-100). This was due to a combination...

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First of all, when we speak about inflation, we should make clear what is the exact defination of it. Inflation is one of the most important economic concepts. At its most basic level, inflation is simply a rise in prices. Over time, as the cost of goods and services increases, the value of for example of a dollar is going to go down because you won’t be able to purchase as much with that dollar as you could have last month or last year. When the purchasing power of a currency starts to decline...

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The effects of inflation will depend partly on whether it is ‘anticipated’ or ‘unanticipated’ inflation. The Impact also depends on the levels of inflation; high levels are more damaging than low levels. Inflation can cause a number of problem for an economy, such as the following: • If prices are increasing this creates costs for firms because they may have to update menus, price lists, brochures, and other materials when prices change in an economy to reflect the higher prices. Because this...

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