Socio-Economic

Topic
On
“Inflation ”

Presented by
Sunny Raina
 Inflation
• “Inflation is nothing more than a sharp
upward rise in price level”.
• Too much chasing , Too few good.
• Inflation is a state in which value of money is
falling and price are rising .
INFLATION
 Types of Inflation
On the basis of Speed
oCreeping inflation
oWalking inflation
oRunning inflation
oHyper inflation

On the basis of Time

oPeace time inflation
oWar-time inflation
oPost-war inflation
On the basis of scope
oComprehensive inflation
oSporadic inflation

On the basis of government reaction

oOpen inflation
oSuppressed inflation
 Inflation Classification
Demand Push Inflation
Cost pull Inflation
Causes of inflation

 Increase in aggregate demand for goods & services.

Increase in cost of production.
TECHNIQUE TO CONTROL INFLATION
a) Monetary Policy

b) Fiscal Policy

c) Other Measures
Monetary Policy
Increasing Bank Rate

Sale of Government Securities

Higher Reserve Ratio

Selective Credit Control

Fiscal Policy
Increase Taxation

Reduction in public expenditure

Increase public borrowing

Control of deficit Financing

Other Measure
To increase Production
Price Control
Population Control
Advantages

• People Feel richer (money Illusion )

•Its shows economic growth.
Disadvantages

•Interest rate will be feel pressure to change

•Less profit: People won’t have money to spend which
means decrease in sales.
Thank you