Effects of Inflation

             An increase in the general level of prices implies a decrease in the real value of money. That is, when the General level of prices rises, each monetary unit buys fewer goods and services. Many people are willing to accept inflation if it can provide full employment because then it is a small price […]

Causes of Inflation

In the long run inflation is generally believed to be a monetary phenomenon while in the short-run and medium term it is influenced by the relative elasticity of wages, prices and interest rates. A great deal of economic literature concerns the question of what causes inflation and what effect it has. There are different schools […]


Concept and Definition of Inflation In general, inflation means the increase in general price level or decrease in purchasing power of money (or value of money). Inflation usually refers to a general rise in the level of prices of goods and services over a period of time. This is also referred to as price inflation. […]