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INFLATION
• DEFINITION
• TYPES OF INFLATION
• CAUSES OF INFLATION
• EFFECTS OF INFLATION
• CONSEQUENCES OF INFLATION
• HOW TO PROTECT YOURSELF FROM INFLATION.
• NATURE OF INFLATION IN DEVELOPING ECONOMY.
• HOW TO CONTROL INFLATION
According to G. Crowther, “Inflation is a state in
which the value of money is falling i.e. prices
rising”.
According to Paul Samuelson, “ A rise in the
general level of price”.
According to Harry G. Johnson, “ Inflation is a
sustained rise in prices”.
Definitions…
Types of inflation…
Open Inflation
Supressed
Inflation
Galloping
Inflation
Creeping Inflation Hyper Inflation
CAUSES OF INFLATION…
1. DEMAND
PULL
2. COST PUSH
Black money
Disposable income
Dearness allowance
RBI’S Monetary policy
Wages
Taxes
Raw
Material
Profit
Margin
 INVESTMENT
INTEREST RATES
EXCHANGE RATES
UNEMPLOYMENT
STOCKS
DECREASE IN THE PURCHASING POWER
CHANGE THE ALLOCATION OF INCOME
EFFECTS OF INFLATION…
Nature OF Inflation IN DEVELOPED
ECONOMY
 DEMAND PULL FACTORS
 INCREASE IN INCOME
HUGE EXPENDITURE
INCREASING
POPULATION
FOREIGN AID CAPITAL
 COST PUSH FACTORS
 INELASTIC SUPPLY
 SUPPLY SHOCKS
 BACKWARD AGRO. SECTOR
CHANGE IN EXCHANGE RATE
INEFFICIENT PUBLIC
SECTORS.
 Adverse effect on production
 Adverse effect on income of distribution.
 Obstacle to development.
 Changes in relative prices.
 Adverse effect on the B.O.P
CONSEQUENCES OF INFLATION
REAL ESTATE
GEOGRAPHIC DIVERSIFICATION
GOLD
EQUITIES
Ways to protect yourself
From INFLATION
https://youtube/-pwincsv4E0
TWO TYPES
How to Control Inflation?
CORDINATED TEAM MEMBERS
DEEPSHIKHA SHARMA
MANVI
RAKESH
 KAPIL
MANJIRI
PRIYA
SALONI DALVI
Inflation

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Inflation

  • 2. • DEFINITION • TYPES OF INFLATION • CAUSES OF INFLATION • EFFECTS OF INFLATION • CONSEQUENCES OF INFLATION • HOW TO PROTECT YOURSELF FROM INFLATION. • NATURE OF INFLATION IN DEVELOPING ECONOMY. • HOW TO CONTROL INFLATION
  • 3. According to G. Crowther, “Inflation is a state in which the value of money is falling i.e. prices rising”. According to Paul Samuelson, “ A rise in the general level of price”. According to Harry G. Johnson, “ Inflation is a sustained rise in prices”. Definitions…
  • 4. Types of inflation… Open Inflation Supressed Inflation Galloping Inflation Creeping Inflation Hyper Inflation
  • 5.
  • 6. CAUSES OF INFLATION… 1. DEMAND PULL 2. COST PUSH Black money Disposable income Dearness allowance RBI’S Monetary policy Wages Taxes Raw Material Profit Margin
  • 7.  INVESTMENT INTEREST RATES EXCHANGE RATES UNEMPLOYMENT STOCKS DECREASE IN THE PURCHASING POWER CHANGE THE ALLOCATION OF INCOME EFFECTS OF INFLATION…
  • 8. Nature OF Inflation IN DEVELOPED ECONOMY  DEMAND PULL FACTORS  INCREASE IN INCOME HUGE EXPENDITURE INCREASING POPULATION FOREIGN AID CAPITAL  COST PUSH FACTORS  INELASTIC SUPPLY  SUPPLY SHOCKS  BACKWARD AGRO. SECTOR CHANGE IN EXCHANGE RATE INEFFICIENT PUBLIC SECTORS.
  • 9.  Adverse effect on production  Adverse effect on income of distribution.  Obstacle to development.  Changes in relative prices.  Adverse effect on the B.O.P CONSEQUENCES OF INFLATION
  • 12. TWO TYPES How to Control Inflation?
  • 13. CORDINATED TEAM MEMBERS DEEPSHIKHA SHARMA MANVI RAKESH  KAPIL MANJIRI PRIYA SALONI DALVI