Home | ARTS | Managerial Economics | Introduction of Inflation

Managerial Economics - Inflation

Introduction of Inflation

   Posted On :  29.05.2018 11:36 pm

Inflation is an economic condition in which the aggregate prices are always increasing in a country.

Introduction of Inflation

Inflation is an economic condition in which the aggregate prices are always increasing in a country. The value of money is falling. Inflation is nothing but too much of money chasing too few goods. For example in Zimbabwe the inflationary rate is too high as more than 1000 % and in turn they require bag full of money for a meal. And the value of their currency is very low in the market. Inflation means not only sustainable rise in the price of the goods and services, but the value of the currency falls in the market and the supply of money in circulation is more.
 
Deflation is the opposite of inflation. It is a state of disequilibrium in which a contraction of purchasing power tends to cause or is the effect of a decline of the price level.

Tags : Managerial Economics - Inflation
Last 30 days 379 views

OTHER SUGEST TOPIC