Causes Of Inflation

  • Inflation

    Inflation means the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. But going by the recent trends, it is no more the case. May be it is true for the general public of India but it is not exactly the same for a particular society of India. For them, as the inflation rises so does their income through various means viz. Coal, CWG, FDI in retail etc.etc. Ask this section of people and its policy makers about the daily price

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  • Inflation

    “Inflation: Everyone's illusion of wealth” The Indian Scenario A talk of inflation is inevitable. The term Inflation is no longer stranger to India and its people. Till the early nineties, Indians even used to two digit inflation rates. But, since the mid nineties, controlling inflation has become the priority for the policy makers. The current scenario of inflation in India is even worse. The current inflation rate for October 2011 is 9.39% and the average inflation rate for the year 2011 is

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  • Inflation

    enfler, gonfler.Le terme inflation désigne une augmentation durable, générale, et auto-entretenue des prix des biens et des services. L'inflation est aussi caractérisée par l'accroissement de la circulation de la monnaie (masse monétaire).Le taux d'inflation est généralement mesuré à partir de l’Indice des prix à la consommation (IPC)Les différents niveaux d'inflation : Stabilité des prix : taux d'inflation inférieur à 2% ; Inflation rampante : 3 à 4% par an ; Inflation ouverte : 5 à 10% de hausse

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  • Inflation

    RESEARCH PROPOSAL TOPIC: Rising inflation in Pakistan: Causes and Remedies SUBMITTED BY: NAILA ERUM NATIONAL DEFENCE UNIVERSITY, ISLAMABAD Rising inflation in Pakistan: Causes and Remedies Introduction Pakistan is currently facing unprecedented high Inflation. High inflation is contributing to increase in vulnerability and fall in real income of lower, middle and fixed income segments of the society. It is increasing uncertainty about future scenario of the business environment

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  • Inflation

    Consequences and Causes of Inflation: A Study in the Context of Bangladesh Mohammad Nayeem Abdullah1 Robaka Shamsher2 Newaz Ahmed Chowudhury3 Abstract In Asia, Bangladesh is one of the hardest hit by the current wave of inflation and oil price hike. The economy has been observing double digit inflation growth on point-to-point basis since July 2007. In Bangladesh, the correlation between per capita income and food weight in total Consumer Price Index (CPI) is one of the highest in the world and the

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  • Inflation

    Inflation rate The overall general upward price movement of goods and services in an economy (often caused by a increase in the supply of money), usually as measured by the Consumer Price Index and the Producer Price Index. Over time, as the cost of goods and services increase, the value of a dollar is going to fall because a person won't be able to purchase as much with that dollar as he/she previously could. While the annual rate of inflation has fluctuated greatly over the last half century

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  • Inflation

    Inflatio n No t a Monetar y Phenomeno n ? Promod e K Mukherje e The cause o f inflation, according t o Keith B Griffi n (Th e Economi c Weekly . Special Number 1961 ) lies i n the structura l imbalances i n a n economy . Whil e granting this, i t i s contended here that i t does not follo w that monetary policy has n o role t o play in combating inflation. I t i s not enough t o achieve a n overall balance between

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  • Inflation

    Assingment on Inflation and Its Effect Introduction During World War II, you could buy a loaf of bread for $0.15, a new car for less than $1,000 and an average house for around $5,000. In the twenty-first century, bread, cars, houses and just about everything else cost more. A lot more. Clearly, we’ve experienced a significant amount of inflation over the last 60 years. When inflation surged to double-digit levels in the mid- to late-1970s, Americans declared it public enemy No.1. Since then,

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  • Inflation

    Inflation may be defined as a situation in an economy when money supply exceeds available goods and services in an economy. It is attributed to budget defict financing. A temporary rise in price in 'NOT' inflation,but a sustained increase in price level for a certain period of time is. Inflation may be good explained by an example as follows:- Inflation shows economic growth, or at least it reflects some economic activity. The major positive aspect is that it helps smaller firms grow to larger

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  • Inflation

    Inflation Inflation is defined, in the dictionary, as a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency. Inflation may seem like a bad thing, but it can also be a good thing at times too. It all just depends on the situation. There are also a few common causes of inflation such as increases in the cost of business and scarcity. Increases in the cost of business are one of the factors that

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  • Inflation

    combinations to direct a country's economic goals. Inflation is when the money supply increases faster than underlying economic growth, which is why the goal is to keep inflation low. Fiscal policy is not the typical measures to use to try to control inflation. Their impact on inflation is uncertain in many cases. The more effective approach to controlling inflation is to use monetary policy measures, because this controls the money supply. In the case the inflation is low, which is good but the GDP is too

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  • Inflation

    The inflation rate in Singapore was rose to 4.9 percent in February 2013. According to CNBC.Com, the rise was mainly because of more significant increase in private road transport costs as well as food and services inflation were also stronger during the month of February. However, the outlook for 2013 inflation was unchanged at 3.5 to 4.5 percent according to Ministry of Trade and Industry (MTI) and MAS. Both MTI & MAS also reiterated core inflation is likely to average 2 to 3 percent for the whole

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  • Inflation

    Project on INFLATION -SUBMITTED BY CHIKKAM.SAI ALEKHYA DANNY VARGHESE DEEPAK SAKTHIVEL DEEPTHI MOHAN GIRISH GANGADHARAN TABLE OF CONTENTS * Inflation * Measures of inflation * Measures of inflation in India * CPI Types * WPI * Calculation of WPI * New series of CPI * CPI Urban/Rural * How Inflation is related with GDP? * Relationship between broad money supply and WPI/CPI * Announcement of hike in DA for government employees cause inflation? *

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  • Inflation

    2: LASA 1: Inflation and Government Economic Policies http://www.bls.gov/cpi/ 1.  What is inflation? What are the causes of inflation?  Is inflation desirable and what can be done to control inflation in a market economy? Inflation is the phenomenon of continuously rising prices of commodities and factors of production. There is a rise in the general price level. There are two broad types of inflation: Demand –Pull Inflation and Cost-Push Inflation Demand-pull inflation occurs when

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  • Inflation

    With inflation money becomes less valuable so costs go up. Government benefits from inflation, it's a tax that doesn't need legislation. They can continue to spend without having to pass tax increases and receive an increase in revenue from higher wages . The citizen looses because the money they earned has lost value in purchasing power and they are penalized for saving. Inflation can be very damaging for a number of reasons. First, people may be left worse off if prices rise faster than their

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  • Inflation

    INFLATION DEFINITION It is defined as a sustained increase in general price level. It can also refer to the condition of “too much money chasing too few goods.” Inflation is an indication of the value of money. A rise in general price means a drop in the value of money held by the society. Inflation is measured using a price index. A weighted consumer price index (CPI) measures the change in the average prices of a ’market basket’ of goods and services purchased by a typical urban household

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  • Inflation

    |3 |Effects of inflation | | | |4 |Causes of inflation | | | |5 |Controlling inflation | | | |6 |Current situation of inflation in India |

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  • Inflation

    NBER WORKING PAPER SERIES CAN INFLATION TARGETING WORK IN EMERGING MARKET COUNTRIES? Frederic S. Mishkin Working Paper 10646 http://www.nber.org/papers/w10646 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 July 2004 For presentation in a conference in honor of Guillermo Calvo, held on April 15 and 16, 2004 at the International Monetary Fund in Washington, DC. The views expressed in this paper are exclusively those of the author and not those of Columbia University

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  • Inflation?

    least make the price level sustainable. What is Inflation? Inflation is the rise in general level of prices of goods and services. It can be said in other ways that inflation is the decrease in value of money. It means that • Each dollar can purchase fewer amounts of goods and service then previous. • It reduces the purchasing power of the currency. Inflation does not mean that all prices are increasing, even during period of rapid inflation; some prices may be relatively constant while others

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  • Inflation

    Inflation Inflation is a measure of changes in the cost of living. Inflation is measured by using a weighted basket of goods and looking at the changes in price. However, in practice, there are many practical difficulties for measuring inflation: 1.Family Expenditure Survey does not include everybody. E.g pensioners are excluded. Pensioners have different spending habits e.g. heating / bus travel account for a higher percentage of their expenditure. Young people will benefit more from falling

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  • 1. What Is Inflation? Inflation Is an Increase in Prices for Goods and Services (What Is Inflation?). What Are the Causes of Inflation? Inflation Has a Variety of Possible Causes, but They Are Between the Keynesian and

    1. What is inflation? Inflation is an increase in prices for goods and services (What is Inflation?). What are the causes of inflation? Inflation has a variety of possible causes, but they are between the Keynesian and monetarist theories, ranging between demand-pull, cost-push, built-in inflation, and the quantity model. With demand-pull, inflation is caused by aggregate demand being more than supply. With cost-push, inflation is caused when manufacturers and businesses raise prices due to shortages

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  • Inflation

    hat is inflation? Inflation is an increase in prices for goods and services (What is Inflation?). What are the causes of inflation? Inflation has a variety of possible causes, but they are between the Keynesian and monetarist theories, ranging between demand-pull, cost-push, built-in inflation, and the quantity model. With demand-pull, inflation is caused by aggregate demand being more than supply. With cost-push, inflation is caused when manufacturers and businesses raise prices due to shortages

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  • Inflation

    Inflation – Impacts On The Economic Growth Of Nigeria By DoubleGist | Published: June 5, 2013 Inflation – Impacts  On The Economic Growth Of Nigeria Inflation – Impacts  On The Economic Growth Of Nigeria A macroeconomics problem facing Nigeria, and the most disturbing, is the problem of inflation. As a result of its growing rate, Nigerian government is concerned about its impacts on her economic growth. To place an order for the Complete Project Material, pay N5,000 to GTBank (Guaranty Trust

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  • Inflation

    Inflation, or the general rise of price levels in an economy, has many deleterious effects. It leaves the economy as a whole poorer relative to pre-inflation levels of wealth (individual and societal). Inflation reduces the value of each unit of currency and thus leaves the holder of that currency with lower purchasing power. Generally speaking, those who benefit from higher inflation are debtors and those who suffer from it- creditors. If one has substantial debt, each dollar one has to repay would

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  • Inflation

    that the central bank had adopted the new Consumer Price Index (CPI) (combined) as the key measure of inflation. Earlier, RBI had given more weightage to Wholesale Price Index (WPI) than CPI as the key measure of inflation for all policy purposes. “Some recommendations of Urjit R. Patel Committee report have been implemented, including adoption of the new CPI (combined) as the key measure of inflation,” said Dr. Rajan, while addressing a press conference here to announce the first bi-monthly monetary

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  • Inflation

    Inflation Introduction and Definition Inflation is a phenomenon which happens world wide. It causes many problems to countries all over the world. Inflation is the rise in the general level of prices. When inflation occurs, each ringgit of income will buy fewer goods and services than before. Inflation will reduce the "purchasing power" of money. However, not all prices rise during inflation. There are some prices which are relatively constant while some prices are decreasing.

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  • Inflation

    In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index

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  • Causes of Inflation

    discussed on the causes of inflation by explaining how the sustained inflation occurs as well as the role of played by monetary policy in the inflation process. The author in this paper agreed that sustained inflation is always and everywhere a monetary phenomenon and this has been agreed by both monetarist and Keynesian assumption. Besides that, the author also mentioned that we need to understand why inflationary monetary policy occurs. This paper also examines the inflation issue faced by

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  • Inflation

    Monetary policy Monetarists emphasize keeping the growth rate of money steady, and using monetary policy to control inflation (increasing interest rates, slowing the rise in the money supply). Keynesians emphasize reducing aggregate demand during economic expansions and increasing demand during recessions to keep inflation stable. Control of aggregate demand can be achieved using both monetary policy and fiscal policy (increased taxation or reduced government spending to reduce demand). (ii)

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  • Causes and Effects of Inflation

    Causes and Effects of Inflation Author Author Affiliation Causes and Effects of Inflation Supply and demand are one of the key factors when it comes to the economics of a country or region. The two factors happen to be the greatest determinants of prices. In cases where there is a high demand and low supply in a region, the prices of commodities or services provided tend to hike. The hiked prices due to high demand and low supply lead to inflation. Inflation has become a worldwide phenomenon

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  • Inflation

    annualised inflation rate in India is 6.46% as of September 2014, as per the Indian Ministry of Statistics and Programme Implementation. This represents a modest reduction from the previous annual figure of 9.6% for June 2011. Inflation rates in India are usually quoted as changes in the Wholesale Price Index, for all commodities. Many developing countries use changes in the Consumer Price Index (CPI) as their central measure of inflation. India used WPI as the measure for inflation but new CPI(combined)

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  • Inflation

    Inflation and Government Economic Policies Inflation is a measure of how prices have changed over time.  If prices are changing due to inflation, each dollar spent will buy less.

In order to answer the questions below, go to the following website:  http://www.bls.gov/cpi/   Questions:   1.  What is inflation? What are the causes of inflation?  Is inflation desirable and what can be done to control inflation in a market economy? 2. What is the Consumer Price Index (CPI)?  How

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  • Inflation

    affect consumer spending, which in turn can affect a firm/s revenue and profit. INFLATION Inflation is a sustained increase in the average price level of a country. It can also be seen as a fall in the value of money. This is known as Deflation. CAUSES Demand Pull Inflation-when there is too much demand for a lot less goods, so firms can raise their prices. Main causes of demand pull inflation: -rapid growth of household income and this leads to consumption

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  • Inflation

    In economics, inflation is a sustained increase in the general price level of goods and srvices in an economy over a period of time. When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. The difference between inflation and a change in price of a particular good or service is that inflation reflects a

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  • Causes of Inflation

    Inflation is not a random increase in the general price level. Inflation means there is a sustained increase in the price level. The main causes of inflation are either excess aggregate demand (economic growth too fast) or cost push factors (supply side factors) . Economists divide the causes into three main categories. 1. Cost-push Inflation: Cost-push inflation occurs when the price level is pushed up by increases in the costs of production. If firms face higher costs, they will usually raise

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  • Inflation

    Inflation occurs when there is a sustained increase in the general price level. Traditionally high inflation rates are considered to be damaging to an economy. High inflation creates uncertainty and can wipe away the value of savings. However, most Central Banks target an inflation rate of 2%, suggesting that low inflation can have various advantages to the economy. Some economists even argue we should target a higher inflation rate during periods of economic stagnation. There are 5main types of

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  • Inflation

    INFLATION Inflation can be generalized as the sudden or consistent of an upward movement in the general price of commodity. While the price of goods increases, the value of money goes down significantly causing the inflation effect. Therefore, inflation demonstrate, a reduction in the purchasing power per unit of money. Inflation can be categorized into various categories according to the rate of price rise of goods. Mild or creeping inflation occurs when prices rise2% to 3%

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  • Inflation

    WHAT IS INFLATION Inflation is best defined as a sustained increase in the general price level leading to a fall in the purchasing power or value of money MAIN CAUSES OF INFLATION * Demand-pull inflation: Demand-pull inflation is likely when there is full employment of resources and aggregate demand is increasing at a time when SRAS is inelastic. * Cost-push inflation: Cost-push inflation occurs when firms respond to rising costs, by increasing prices to protect their profit margins. There

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  • Inflation

    1. What is Inflation: Five Types of Inflation Defined Inflation is a situation of sustained and inordinate increase in the prices of goods and services. When there is a rise in general price level for all goods and services it is known as inflation. An inflationary situation could be because of the rise in any single price or a group of prices of related goods and services. Types of Inflation There are no less than five different types of inflation: • Commodity inflation, better known as cost-push

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  • Inflation

    Inflation Tutorial http://www.investopedia.com/university/inflation/ Thanks very much for downloading the printable version of this tutorial. As always, we welcome any feedback or suggestions. http://www.investopedia.com/contact.aspx Table of Contents 1) Inflation: Introduction 2) Inflation: What Is Inflation? 3) Inflation: How Is It Measure? 4) Inflation: Inflation And Interest Rates 5) Inflation: Inflation And Investments 6) Inflation: Conclusion Introduction During World War II, you could

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  • Inflation

    like to discuss about is “The dollars and sense of inflation” for the Straits Times newspaper written by economics correspondent Aaron Low. In the article, the author discusses about the inflation report in Singapore which came with two indicators. The first was a breakdown of how inflation had affected the various income groups. According to the Department of Statistics (DOS), the top 20 percent of income earners face with a 5.7 per cent inflation rate due to the rising costs of private transport

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  • Inflation

    There is a great controversy over the question whether inflation promotes economic development. A group of economists including Keynes is of the opinion that inflation, in one form or the other, is a factor which helps economic growth. Usually, two main arguments have been advanced in support of the view. Firstly, it is argued that inflation tends to redistribute income and wealth. The redistributive effect of inflation is always in favour of profit-earning class, that is to say, it redistributes

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  • Inflation

    Inflation: Various measures initiated by RBI for controlling inflation and their impact on Economy. Our dear friend is making our life more dearer, ‘Inflation’. In economic term, inflation is rise in general prices of goods and services in an economy which leads to erosion in the purchasing power of money i.e. each unit of currency buys fewer goods and services. Its effects on the economy are both positive and negative. The task of keeping inflation low or stable is usually given to monetary

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  • Inflation

    Inflation is one of the most important concepts in economics. Defined simply as a rise in prices, an increase in inflation along with its cost to the economy usually brings fear and worry to many people. To economists, inflation comes with many costs to the economy. With the inflation that is expected, the costs include the shoe-leather cost, the menu cost, relative price distortions, unfair tax treatment and general inconvenience. When the inflation is unexpected, it arbitrarily redistributes wealth

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  • Inflation

    INFLATION Not a single day passes by without us witnessing protests by people against raising prices . Price of one commodity or the other keeps on raising every single day and people tend to protest against such an act by the government . Prices of not only electronic goods or petrol but also those of basic commodities and food items keep on increasing . This increase in prices in termed by the so called economists as INFLATION . People all over the world have been facing this

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  • Inflation

    PRICE INFLATION IN BANGLADESH PRICE INFLATION IN BANGLADESH Course : Economics Prepared for: Dr. Samir Kumar Sheel Assistant Professor Department of Marketing, FACULTY OF BUSINESS STUDIES Prepared by: A.T.M. Golam Kibria Khan EMBA, 19TH BATCH, ROLL: 41119055 Department of Marketing FACULTY OF BUSINESS STUDIES UNIVERSITY OF DHAKA DATE OF SUBMISSION : August 02, 2011 Letter of Transmittal August 02, 2011 Assistant Professor, Dr. Samir Kumar Sheel Course Teacher: Economics Department of

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  • Inflation

    INFLATION Economists use the term “inflation” to denote an ongoing rise in the general level of prices quoted in units of money. The magnitude of inflation ,the inflation rate is usually reported as the annualized percentage growth of some broad index of money prices. With U.S. dollar prices rising, a one-dollar bill buys less each year. Inflation thus means an ongoing fall in the overall purchasing power of the monetary unit. Inflation rates vary from year to year and from currency to currency

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  • Inflation

    2). Inflation in Bangladesh and Policy Responses a). Present State and comparison with some developing countries b).Problems for entrepreneurs and consumers c). Policy prescriptions d). Some specific programs e).Concluding remarks Last date of submission:1st August, 2012 a). Present State and comparison (country wise Scenario) with some developing countries: According to the Bangladesh Bureau of Statistics (BBS), the national inflation in Bangladesh is 8.56% on point-to-point

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  • Inflation

    Inflation, a constant growth in the price level, this cause feelings of unfairness and demolishes the informational state of prices and the market. Inflation isn't such a bad thing for some companies or businesses that can increase their salaries or prices and also retain their jobs or sell their merchandise, they are the winners in this situation. However, the companies or businesses who can not increase their salaries or prices, or who lose their occupation because their salary

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  • Inflation

    Inflation, Types, Causes, Impacts and Remedies Inflation In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy A chief measure of price inflation is the inflation rate

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