FEATURES OF INFLATION
1.Inflation leads to persistent remarkable and continuous rise in general pricelevel.2.Inflation is a scarcity oriented.3.Inflation is a dynamic phenomenon. It is not a state of high prices, but a process of rising prices.4.Inflation is a state of disequilibria. It involves an imbalance betweenaggregate demand and aggregate supply.5. Inflation is a pure monetary phenomenon.
Real inflation takes place only after full employment. So it is a post frillemployment phenomenon.7.Inflation is a longer period phenomenon.
TYPES OF INFLATION
Inflation is often classified on three different criteria. Firstly, one mightdistinguish between various types of inflation on the basis of speed at which thegeneral price level rises. Secondly, one way distinguishes between open andsuppressed inflation. Finally, as we find in the modern macroeconomic theory,inflation is classified on the basis of the factors, which induce it. On the criterion of the rate at which the general price level rises, we have the following types of inflation:1. Creeping Inflation2. Walking Inflation3. Running Inflation4. Galloping or Hyper-Inflation5. Cost-Push Inflation
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