Inflation and growth of production: theory and practice
Introduction
The topic of our presentation is the “Inflation and growth of production: theory and practice”.
Thus our presentation contains two main parts.
Firstly we will look out the theory. Here we will single out the keinsian version of this question.
Then we will review some statistic indexes which concern our topic.
1. Inflation - Monetary sense of "enlargement of prices" (originally by an increase in the amount of money in circulation) first recorded 1838 in Amer.Eng.
Kinds
On the Basis of Rate of inflation
Inflation on this basis is grouped as (i) Creeping inflation (ii) Walking inflation (iii) Running inflation and (iv) Hyper inflation.
(i) Creeping inflation. is a situation in which the rise in general price level is at a very slow rate over a period of time. Under creeping inflation, the price level rises up to a rate of 2 percent per annum. A mild inflation is generally considered a necessary condition of economic growth.
(ii) Walking inflation. Walking inflation is a marked increase in the rate of inflation as compared to creeping inflation. The price rise is around 5 percent annually.
(iii) Running inflation. Under running inflation, the price increase is about 8 to 10 percent per annum.
(iv) Galloping or Hyper Inflation. Galloping inflation is a full inflation. Keynes calls it as the final stage of inflation. It is a stage of inflation which starts after the level of full employment is reached. Here price Causes of Inflation level rises very rapidly within a short period.
1.
Economists wake up in the morning hoping for a chance to debate the causes of inflation. There is no one cause that's universally agreed upon, but at least two theories are generally accepted:
Demand-Pull Inflation was the Keynesian point of view - This theory can be summarized as "too much money chasing too few goods". In other words, if demand is growing faster than supply, prices will increase. This usually occurs in growing economies.
The
The topic of our presentation is the “Inflation and growth of production: theory and practice”.
Thus our presentation contains two main parts.
Firstly we will look out the theory. Here we will single out the keinsian version of this question.
Then we will review some statistic indexes which concern our topic.
1. Inflation - Monetary sense of "enlargement of prices" (originally by an increase in the amount of money in circulation) first recorded 1838 in Amer.Eng.
Kinds
On the Basis of Rate of inflation
Inflation on this basis is grouped as (i) Creeping inflation (ii) Walking inflation (iii) Running inflation and (iv) Hyper inflation.
(i) Creeping inflation. is a situation in which the rise in general price level is at a very slow rate over a period of time. Under creeping inflation, the price level rises up to a rate of 2 percent per annum. A mild inflation is generally considered a necessary condition of economic growth.
(ii) Walking inflation. Walking inflation is a marked increase in the rate of inflation as compared to creeping inflation. The price rise is around 5 percent annually.
(iii) Running inflation. Under running inflation, the price increase is about 8 to 10 percent per annum.
(iv) Galloping or Hyper Inflation. Galloping inflation is a full inflation. Keynes calls it as the final stage of inflation. It is a stage of inflation which starts after the level of full employment is reached. Here price Causes of Inflation level rises very rapidly within a short period.
1.
Economists wake up in the morning hoping for a chance to debate the causes of inflation. There is no one cause that's universally agreed upon, but at least two theories are generally accepted:
Demand-Pull Inflation was the Keynesian point of view - This theory can be summarized as "too much money chasing too few goods". In other words, if demand is growing faster than supply, prices will increase. This usually occurs in growing economies.
The