plz send me your feedback i am eagerly waiting for it at mkvi2013@gmail.com. This ppt is made by me can be used by you for preparing for your presentation at cluster level
2. This is the process by which the price level rises and
money loses value.
It can be further categorized into following:
a)Demand-pull inflation
b)Cost-push inflation
3. It can be commonly described as ,“too much money
chasing too few goods”.
Demand pull inflation may be due to :
Increase in money supply
Increase in government purchases
Increase in exports
4. Cost-push inflation is a type of inflation caused by
substantial increases in the cost of important goods
or services where no suitable alternative is
available.
Causes of Cost push inflation are:
Increase in money wage rates
Increase in money prices of raw materials.
6. • Price rise is quite low
• Rate of inflation is upto 3% per annum
• Not considered to be damaging for
economic growth
7. Rate of inflation is (3-10)% per anuum
Developing countries experience this
range of inflation
8. • Inflation rate becomes alarming ,the rate lies
between the (10-20)% per annum
• It is a reason of worry
9. • Inflation Rate goes beyond 20% per annum
• This situation is hard to cope with because
all economic policies gets derailed
10. • Inflation rate is huge about 1000% per annum
• It was really something we can call a “DISASTER”.
• Extremely rapid or out of control inflation.
*There is no precise numerical definition to
hyperinflation. Price increases are so out of control
that the concept of inflation is meaningless.
*The most famous example of hyperinflation occurred
in Germany between January 1922 and November
1923.
By some estimates, the average price level
increased by a factor of 20 billion!
11. 1. Excess liquidity of money
2. Credit Expansion
3. Government Investment
4. Fiscal Policy
5. Poor Infrastructure
6. Black Marketing & Corruption
7. Shortage of essential commodities
8. Population growth
13. *Effect on distribution of income and wealth
*Impact on Output and Employment
*Impact on Government Revenue
14. *Consumer is a loser; Sellers are the gainers
*Rich get Richer and Poor get Poorer
15. *Excess Liquidity Of money
*Credit Expansion
*Government Expenditure
*Government Investment
*Fiscal Policy
*Rate Of production is low
*Population Growth
*CORRUPTION
16. *Money supply should be controlled
*Credit expansion should be controlled
*Production should be se(increase)
*Hoarding and Black Marketing should be
avoided