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# Inflation

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### Transcript

• 1. INFLATION
• 2. BBS (M-1)2nd
• 3. Group Members Mehnaz Akhtar 17 Umair Khalil 42 Mehreen Sohail 44 Sidra Habib 167 Shazia Ramzan 31 Ayesha Shaheen 06 Waseem Gill 26
• 4. Introduction Definition Methods to measure Inflation Types of Inflation Causes of Inflation Effects of Inflation Measure to control Inflation Inflation rate Conclusion
• 5. “ Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair ”
• 6. Inflation means a persistent increase in the level of consumers prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.
• 7. In Economics, Inflation is a rise in the general level of prices of goods and services in an economy over a period of time.
• 8.  Consumer Price Index (CPI)  Wholesale Price Index (WPI)
• 9. Current CPI/WPI – Last Calculated CPI/WPI Last Calculated CPI/WPI Inflation Rate = 150 - 140 140 Inflation Rate = 100 100 =7.12%
• 10. Umair Khalil Roll No. 42
• 11.  War Time Inflation Peace Time Inflation
• 12. 1. Creeping Inflation. 2. Walking Inflation. 3. Running Inflation. 4. Galloping or Hyper Inflation.
• 13.  Open Inflation : Government takes no steps to control price rice  Repressed Inflation : Price level check by Government
• 14. Mehreen Sohail Roll No. 44
• 15.  Comprehensive : All commodities available in the economy witness price rise  Sporadic Inflation : Only a few commodities register a rise in price
• 16.  Partial : Before the stage of full employment  Full : After the stage of full employment is reached
• 17.  Demand Pull : Increase in the aggregate demand for goods and services  Cost Push : a. an increase in wages b. an increase in the profit margin
• 18. Sidra Habib Roll No. 167
• 19. Inflation is a persistent and appreciable rise in general level or average of price -Acc to ACKLEY
• 20. 1. DEMAND side factors: Aggregate demand is greater than aggregate supply 2. SUPPLY side factors: Aggregate supply fall short of aggregate demand
• 21. 1. Rise in Public expenditure - expenditure incurred by govt. - Aggregate demand is greater than aggregate supply
• 22. 2. Deficit financing - Expenditure is more than Income
• 23.  Irving fisher’s quantity of money explains- “Increase in money supply with proportionate increase in output lead to rise in PRICE and fall in money VALUE”
• 24.  It is unearned income by public servants Excess demand lead to inflation
• 25.  Growth in population  Growth in private expenditure  Increase in Export  Money reduction in direct taxes
• 26.  Industrial disputes  Natural calamities  Artificial scarcity  Increase in export
• 27.  Global factors [impact high oil price]  Fluctuating agricultural growth  Neglecting the production of consumer goods
• 28. Shazia Ramzan Roll No. 31
• 29. Effects of inflation  Inflationary noise  Effect on economic growth  Effect on consumption and economic welfare
• 30. Economic Effect of inflation • Distribution of income. • Distribution of wealth • Different sector of society.
• 31.  Wage earner  Producer  Fixed income people  Borrower & lender  Government  Employment
• 32. Ayesha Shaheen Roll No. 06
• 33.  MONTARY MEASURES  FISCAL MEASURES  OTHER MEASURES
• 34. A) CREDIT CONTROL B) DEMONETIZATION C) ISSUE OF NEW CURRENCY
• 35. A) REDUCTION IN UNNECESSARY EXPENDITURE B) INCREASE IN TAXES C) INCREASE IN SAVING D) SURPLUS BUDGETS E) PUBLIC DEBT
• 36. A) PRICE AND WAGE CONTROL B) INDEXATION C) TO INCREASE INPRODUCTION D) RATIONING
• 37. Waseem Gill Roll No. 26
• 38. Inflation rate 89.7 %
• 39. German paper mark OCT 1923 Inflation rate 20.87%