General Concepts
Impacts of Inflation
Inflationary pressure in an economy my generate good effects on the economy, particularly in case of ‘creeping’ or…
August 31, 2021 · Taylor EmmaAuthor: Taylor Emma
A senior editor for The Mars that left the company to join the team of SenseCentral as a news editor and content creator. An artist by nature who enjoys video games, guitars, action figures, cooking, painting, drawing and good music.
General Concepts
True Semi-inflation
True inflation • It takes place after full employment of all factor inputs in an economy. • In…
August 31, 2021 · Taylor EmmaGeneral Concepts
Hyper Moderate Inflation
Hyper Inflation • The price level goes on rising at a very fast rate. • Often there happens…
August 31, 2021 · Taylor EmmaGeneral Concepts
Cost Push Open Inflation
Cost Push Inflation • Inflation may originate from supply side also. • Aggregate demand remaining unchanged, a fall…
August 31, 2021 · Taylor EmmaGeneral Concepts
Forms of Inflation
Inflation may be of different forms, such as: Demand Pull Inflation • When in an economy aggregate demand…
August 31, 2021 · Taylor EmmaGeneral Concepts
The Quantity Theory by Keynes
• Keynes reformulated the Quantity Theory of Money. • In his opinion the quantity of money does not…
August 31, 2021 · Taylor EmmaGeneral Concepts
Cash Balance Approach
• It states that it is not total money but that portion of cash balance people spend that…
August 31, 2021 · Taylor EmmaGeneral Concepts
QUANTITY THEORY OF MONEY
Quality theory of Money can be analysed by two different approaches: (1) Fisher’s Theory (2) Cash Balance Approach…
August 31, 2021 · Taylor EmmaGeneral Concepts
GRESHAM’S LAW
he Law states that bad money drives good money out of circulation. This is true in case of…
August 31, 2021 · Taylor EmmaGeneral Concepts