Meaning and Definition of Inflation [Indian Economy] #1

Meaning and Definition of Inflation

Inflation and also known as “price rise” in which generally price of commodities are increases and rise which means more money is paid for buying and purchasing goods & services in an economy, inflation is opposite of deflation and are expressed in percentage or rates.

Definition of Inflation 

Here are a few different definitions of Inflation from different economists.

  • According to Shapiro, “Inflation is a persistent and appreciable rise in general price level”.
  • According to Coulbourn, “Inflation is the stage of too much money chasing too few goods”.
  • According to Peterson, “The word inflation in the broadest possible sense refers to an increase in the general price level which is sustained and non-seasonal in character”.

The reason due to which Inflation is mainly caused is a rise in the cost of production and increase in demand of commodities which often occurs due to Increase in taxes and inputs price and where demand increase due to increase in money income, growing population, etc, these are the causes due to which economy of any country has to deal with inflation.

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