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INVESTMENT AND RATE OF INTEREST

• Investment = a change in the stock of capital over a period of time. • Investments are undertaken upto…

Control of Inflation

Impacts of Inflation

Inflationary pressure in an economy my generate good effects on the economy, particularly in case of ‘creeping’ or ‘walking’ inflation.…

True Semi-inflation

True inflation • It takes place after full employment of all factor inputs in an economy. • In a situation…

Hyper Moderate Inflation

Hyper Inflation • The price level goes on rising at a very fast rate. • Often there happens hourly increase…

Cost Push Open Inflation

Cost Push Inflation • Inflation may originate from supply side also. • Aggregate demand remaining unchanged, a fall in aggregate…

Forms of Inflation

Inflation may be of different forms, such as: Demand Pull Inflation • When in an economy aggregate demand exceeds aggregate…

The Quantity Theory by Keynes

• Keynes reformulated the Quantity Theory of Money. • In his opinion the quantity of money does not directly affect…

Cash Balance Approach

• It states that it is not total money but that portion of cash balance people spend that influences price…