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Inflation presented by Tooba

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Inflation such a monster

Inflation such a monster

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    Inflation presented by Tooba Inflation presented by Tooba Presentation Transcript

    • INFLATION TOOBA KHAN
    • PRESENTATION PLAN
      • Introduction.
      • Effects on Economy.
      • Other Terms.
      • Types of Inflation.
      • Reasons of Inflation.
      • Measures to Control Inflation .
      • Conclusion.
    • INTRODUCTION…… “ Inflation is a rise in the general level of prices of goods and services in an economy over a period of time.”
    • EFFECTS ON ECONOMY …
      • GENERAL EFFECT
      • NEGATIVE EFFECT
      • POSITIVE EFFECT
    • GENERAL EFFECT
      • An increase in the general level of
      • prices implies a decrease in the
      • purchasing power of the currency.
    • NEGATIVE EFFECT
      • High or unpredictable inflation rates are regarded as harmful to an overall economy.
      • Negative effects of inflation include a decrease in the real value of money and other monetary items over time.
    • POSITIVE EFFECT…
      • Positive effects include a mitigation of
      • economic recession, and debt relief by
      • reducing the real level of debt.
    • OTHER TERMS ….
      • DISINFLATION – the reduction of rate of inflation .
      • HYPERINFLATION-an out of control inflationary spiral .
      • STAGFLATION – high inflation combined with economic stagnation and unemployment.
    • TYPES OF INFLATION..
      • Demand pull Inflation .
      • Cost push theory .
      • Pricing power Inflation .
      • Sectoral Inflation .
    • DEMAND PULL INFLATION..
      • It is caused by increases in aggregate demand due to increased private and government spending.
    • COST PUSH THEORY..
      • It is also called “supply shock inflation”, is caused by a drop aggregate supply .
      • This may due to natural disasters , or increased prices of inputs..
    • PRICING POWER INFLATION.
      • Pricing Power Inflation is more often called as administered price Inflation..
      • This type of Inflation occurs when the business houses and industries decide to increase the price of their respective goods and services to increase their profit margins.
    • SECTORAL INFLATION…
      • The Sectoral Inflation takes place when there is an increase in the price of the goods and services produced by a certain sector of industries …
    • REASONS OF INFLATION
      • Lack of balance in the country’s budget.
      • Financial problem, financing the deficit of money by printing.
      • Sudden increase in production costs.
      • Significant increase in the level of energy resources.
      • Faulty structure of the economy .
      • Exported goods far exceeding imported ones.
      • Too many monopolies in the economy.
      • Imported Inflation .
      • Problems with financial planning.
    •  
    • MEASURES TO CONTROL INFLATION…
      • MONETARY POLICY
      • FISCAL POLICY
      • OTHER MEASURES
    • MONETARY POLICY…
      • It aims at reducing money supply in the market.
      • CREDIT CONTROL
      • ISSUE OF NEW CURRENCY
    • FISCAL POLICY..
      • It Majorly pertains to taxation and interest policies .
      • REDUCTION IN UNNECESSARY EXPENDITURE
      • INCREASE IN TAX
      • INCREASE IN SAVING
      • SURPLUS BUDGET
      • PUBLIC DEBT
    • OTHER MEASURES …
      • Are those which aim at increasing aggregate supply addressing aggregate demand directly…
      • INCREASE PRODUCTION.
      • RATIONALE WAGE POLICY.
      • PRICE CONTROL.
      • RATIONING.
    • CONCLUSION…
      • From various monetary , fiscal and other measures it becomes clear that to control inflation government should adopt all measures simultaneously.
      • Inflation is like a hydra-headed monster which should be fought by using all the weapons at the command of the government.
    • Presented by TOOBA KHAN . ICMAP .