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Wednesday, July 24, 2013

PPT On Inflation

Inflation Presentation

Inflation Presentation Transcript: 

2.Sub topics
Features with examples
Degree of inflation
Causes –demand and supply side
Measures-monetary and fiscal measures

a sustained increase in the general price level leading to a fall in the purchasing power or value of money
The result of inflation is that the nominal amount of goods and services that a unit of currency can purchase (its purchasing power) declines over time.

4.Features +examples
To be called as ‘inflation’ , it should sustain for at least more than a day, week or month and the rise in price level must be somewhat substantial
The unfortunate result of the inflation is "spiral".
Inflation is stated as a percentage

5.Degree of inflation

6.Causes of inflation
The inflation taking place due to demand pressures is known as Demand pressures is known as Demand--Pull Inflation.
Increase in the overall price level due to cost-- pressures is known as Cost--Push or Supply Push or Supply-side

7.Demand side causes
1. Increase in money supply
2. Increase in disposable income
3. Increase in public expenditure
4. Increase in consumer spending
5.Cheap monetary policy
6. Deficit financing
7. Black money
8. Expansion in private sector
9. Exchange Rates
10. Increase in exports

8.Supply side causes
1.Shortage of factors of production
2. Artificial scarcity
3. Increase in exports
4. Industrial dispute
5. Natural calamities
6. Reduced production
7. Global factors

9.Effects of inflation
1.Effects on redistribution of income and wealth
2. Effects on production
3. Misallocation of resources
4. Changes in the process of transactions
5.Reduction in production
6.Black marketing, hoarding etc
7. Reduction in savings
8. Fall in quality
9.Encourages speculation
10. Hinders foreign capital

Monetary measures
Fiscal measures
Other measures

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