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Inflation

Inflation

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Published by: api-3757629 on Oct 18, 2008
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03/18/2014

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Kishor Bhanushali
Faculty \u2013 Economics
IBS-Ahmedabad

Increase in the general level of prices in an
economy that is sustained over a period of time is

called inflation
General price level
Sustained increase over time
Inflation is measured for a basket of goods and

services
Creeping inflation \u2013 smaller or gradual increase in

prices \u2013 single digit inflation rate
Galloping inflation \u2013 double or triple digit rate
Hyperinflation \u2013 large and accelerating prices

Distribution of income and wealth
The rich get richer and poor get poorer
Loss to fixed income earners
Gains to profit earners
Gains to the debtors
Loss to the creditor
Loss to wage earners
Government
Economic growth
Employment

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