what is inflation?

Answer 1

Inflation is measured as the growth of the money supply in an economy, without a commensurate increase in the supply of goods and services. This results in a rise in the general price level, as measured against a standard level of purchasing power. There are a variety of measures of inflation in use, related to different price indices, because different prices affect different people. Two widely known indices for which inflation rates are commonly reported are the Consumer Price Index (CPI), which measures nominal consumer prices, and the GDP deflator, which measures the nominal prices of the goods and services produced by a given country or region.

Mainstream economists' views of the causes of inflation can be broadly divided into two camps: the "monetarists" who believe that monetary effects dominate all others in setting the rate of inflation, and the "Keynesians" who believe that the interaction of money, interest and output dominate over other effects. Keynesians also tend to add a capital goods (or asset) price inflation to the standard measure of consumption goods inflation. Other theories, such as those of the Austrian school of economics, believe that inflation is caused by an increase in the supply of money by central banking authorities (Monetary inflation).

If inflation is to high then people lose their jobs because a country will quit buying goods, just the necessities. Businesses go out markets fluxuate. Its not good.

Answer 2

Inflation is simply the prices of everything goes up. What caused the inflation? The simple answer is the wages up, the sotock market index goes up, the property values go rocket high and the rents go up very high, then inflation index up. There a conspiracy among the rich and powerful peoples, the bankers, the politicians, the property developers, and the wars are caused by peoples want to make a huge money by creating the war in oil rich countries. What's more? They control the ups and downs of oil prices then by the simple action of low price purchase the oil stock share and sell it at the higher price. Why this world always has wars in OPEC countries making many civilians killed? It's only because of oil monies can be generated by bombing the oil country to make it higher in price of petrol oil.
Hong Kong is a bad city to live because they cost of living is number five of the most expensive in this world. The Hong Kong government is deliberately conspiring with the real developers, and its link to the powerful people from China and many developed countries' finance personnel to pop up the stock market index. The rich and poor gap is worsen than the third world countries with gini coefficient of 0.535 and the norm is 0.3.

Answer 3

Inflation refers to the cost of goods and money etc. going up. Goods become costlier and to provide same standard of living, the salaries also go up, pushing up the costs further. Inflation literally means an expansion and unless well supported, the expanding bubble has to burst sooner or later. It also refers to the overheating of the economy (gases expand when heated).

Answer 4

Hi Madhu,....................Inflation is actually...A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.


Inflation is measured as the growth of the money supply in an economy, without a commensurate increase in the supply of goods and services. This results in a rise in the general price level, as measured against a standard level of purchasing power.

Mainstream economists' views of the causes of inflation can be broadly divided into two camps: the "monetarists" who believe that monetary effects dominate all others in setting the rate of inflation, and the "Keynesians" who believe that the interaction of money, interest and output dominate over other effects. Keynesians also tend to add a capital goods (or asset) price inflation to the standard measure of consumption goods inflation. Other theories, such as those of the Austrian school of economics, believe that inflation is caused by an increase in the supply of money by central banking authorities (Monetary inflation).



There are a variety of measures of inflation in use, related to different price indices, because different prices affect different people. Two widely known indices for which inflation rates are commonly reported are the Consumer Price Index (CPI), which measures nominal consumer prices, and the GDP deflator, which measures the nominal prices of the goods and services produced by a given country or region.

In classical political economy, inflation meant increasing the money supply, while deflation meant decreasing it.

The purpose of this increase in money supply is to accommodate any increase in real GDP.

Some economists in a few schools of economic thought still retain this usage. In mainstream economic terms these would be referred to as expansionary and contractionary monetary policies.

Source(s)
http://en.wikipedia.org/wiki/Inflation

Answer 5

Inflation is actually nothing more but price-rise occuring in a country throughout a year.

Answer 6

First we could desire to comprehend inflation. there are various diverse definitions and theories of techniques from the international of economists on what inflation skill. even though the guy on the line is conscious that relatively there is too plenty forex floating around interior the equipment inflicting a devaluation of the dollar and finest to greater advantageous fees. regrettably unions usually situations combat for greater advantageous wages because of the fact of increasing fees even though this purely greater will enhance inflation because of the fact fees proceed to upward push. the biggest element the government can do to decrease inflation is to lessen the supply of money interior the equipment. The physique of techniques will contain: cost regulation - regulating fees so as that they fall interior of a band the place the corporation vendors could make a earnings yet yet no longer take earnings of the region rules on advertisement financial lending establishments - enhance the subject for acquiring a private loan via increasing the expenditures of activity and insisting on greater advantageous securities for loans. Making it greater durable to get a private loan helps to chop back the bypass of money interior the equipment Incentives for saving - Monies in fixed deposits are monies that now no longer freely bypass interior the equipment and could teach useful to the top customers especially as quickly as the financial equipment stabilizes as quickly as greater. those are countless the techniques the government could use to hold lower back the financial equipment and there are some greater state-of-the-paintings techniques as referenced via countless the different answerers. even though those curiously undemanding techniques nonetheless very useful require very quite some cooperation between the government and the corporate international for the greater useful good of no longer purely the detrimental guy however the country on an entire.

Answer 7

when your tires are blown up too big...... when everything costs to much and the dollar isnt worth a dollar its been devalued

Answer 8

Reduction of money value.

Answer 9

price rise.

Answer 10

PRICE RISES

RISE

INCREASE

PRICE INCREASES

DEFLATION (ANTONYM)