Inflation: Types, Causes, Effects, and Control Measures in Macroeconomics
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PREPARED BY
DR. KAMALIKA CHAKRABORTY
ASSISTANT PROFESSOR (DEPARTMENT OF ECONOMICS)
KHATRA ADIBASI MAHAVIDYALAYA, BANKURA,WEST BENGAL
DATE OF LECTURE : 3/06/2021
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What is inflation?
Inflation is the increase in the general price level over a
period of time.
Different types of inflation
Demand Pull inflation
Cost Push inflation
Creeping inflation
Walking inflation
Galloping inflation
Hyperinflation
Demand Pull inflation and its causes
Inflation Forecasts
Economic Growth
Rise in exports
Rise in government spending
Exorbitant rise in supply of money
Demand pull inflation arises due to rise in demand for goods and
services
Causes
Cost Push inflation and its causes
Cost push inflation occurs when prices rise due to rise in cost of
production and higher cost of raw materials
Causes
Increased taxes
Increase in wages
Scarcity in supply of raw materials
Effects of inflation
Effects on production
Effects on distribution of wealth and income
Effects on earning and employment
Effects on government investment
Effects on progress
Effects on purchasing power
Measures to control inflation
Monetary measures
Fiscal measures
Bank rate
CRR
SLR
Open Market Operations
Repo rate
Reverse Repo rate
Demonetization
Issuing new currency
Fixed Margin Requirement
Moral Suasion
Reduction in government
expenditure
Increase in taxes
Increase in savings
Public debt
Other measures
Increase in production
Price control
Rational wage Policy
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Inflation, the increase in the general price level over time, is explored in-depth covering different types like demand-pull and cost-push, their causes, effects on production, wealth distribution, employment, government investment, and purchasing power, along with measures to control inflation including monetary and fiscal strategies.
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Presentation Transcript
COURSE: B.Sc. (PROGRAMME) IN ECONOMICS PAPER NAME MACROECONOMICS-I TOPIC-INFLATION YEAR- FIRST SEMESTER- 2 SESSION- 2020-2021 DATE OF LECTURE : 3/06/2021 PREPARED BY DR. KAMALIKA CHAKRABORTY ASSISTANT PROFESSOR (DEPARTMENT OF ECONOMICS) KHATRA ADIBASI MAHAVIDYALAYA, BANKURA,WEST BENGAL
What is inflation? Inflation is the increase in the general price level over a period of time.
Different types of inflation Demand Pull inflation Cost Push inflation Creeping inflation Walking inflation Galloping inflation Hyperinflation
Demand Pull inflation and its causes Demand pull inflation arises due to rise in demand for goods and services Causes Inflation Forecasts Economic Growth Rise in exports Rise in government spending Exorbitant rise in supply of money
Cost Push inflation and its causes Cost push inflation occurs when prices rise due to rise in cost of production and higher cost of raw materials Causes Increased taxes Increase in wages Scarcity in supply of raw materials
Effects of inflation Effects on production Effects on distribution of wealth and income Effects on earning and employment Effects on government investment Effects on progress Effects on purchasing power
Measures to control inflation Monetary measures Bank rate CRR SLR Open Market Operations Repo rate Reverse Repo rate Demonetization Issuing new currency Fixed Margin Requirement Moral Suasion Other measures Fiscal measures Reduction in government expenditure Increase in taxes Increase in savings Public debt Increase in production Price control Rational wage Policy
