What Is Inflation? Pregnant Definition Features Terms

What is Inflation? Meaning

Inflation refers to a continuous ascension inward full general cost score which reduces the value of money or purchasing ability over a stream of time.

Statistically speaking, inflation is measured inward terms of a per centum ascension inward the cost index (i.e. per centum charge per unit of measurement per unit of measurement time) unremarkably for an annum (a year) or for 30-31 days (a month).

Definition of Inflation

According to Crowther,

"Inflation is a Earth inward which the value of money is failing i.e. the prices are rising."

According to Coulbourn,

"Inflation is also much of money chasing also few goods."

Features of Inflation

The characteristics or features of inflation are every bit follows :-

1. Inflation involves a procedure of the persistent ascension inward prices. It involves rising tendency inward cost level.
2. Inflation is a Earth of disequilibrium.
3. Inflation is scarcity oriented.
4. Inflation is dynamic inward nature.
5. Inflationary cost ascension is persistent as well as irreversible.
6. Inflation is caused past times excess need inward relation to furnish of all types of goods as well as services.
7. Inflation is a purely monetary phenomenon.
8. Inflation is a post service amount occupation phenomenon.
9. Inflation is a long-term process.

Terms Related to Inflation

The of import terms related to inflation are every bit follows :-

1. Deflation : Deflation is a status of falling prices. It is simply the contrary of inflation. In deflation, the value of money goes upward as well as prices autumn down. Deflation brings a depression stage of concern inward the economy.
2. Disinflation : Disinflation refers to lowering of prices through anti-inflationary measures without causing unemployment as well as reduction inward output.
3. Reflation : Reflation is a province of affairs of rising prices intentionally adopted to remain the depression stage of the economy. In reflation, along alongside rising prices, the employment, output as well as income also growth until the economic scheme reaches the stage of amount employment.
4. Stagflation : Paul Samuelson describes Stagflation every bit the paradox of rising prices alongside increasing charge per unit of measurement of unemployment.
5. Stagnation : Stagnation inward the charge per unit of measurement of economical growth which may hold upward a tedious or no economical growth at all.
6. Statflation : The term 'Statflation' was coined past times Dr. P.R. Brahmananda to depict the inflationary province of affairs of India. According to Brahmananda, Rising prices inward the middle of a recession is known every bit Statflation.