Professional Documents
Culture Documents
AFTERNOO
N FRIENDS
INFLATION
&
RISK
INFLATION
Inflation is too much money & deposit currency that
is too much currency in relation to the physical
volume of business being done.
-
Kemmerer
SUPPRESSED
OPEN INFLATION
INFLATION
OPEN INFLATION
HYPER
CREEPING WALKING RUNNING
INFLATION
INFLATION INFLATION INFLATION
CREEPING
INFLATION
SECTORAL COMPREHENSIVE
INFLATION INFLATION
SECTORAL/SPORADI
C
INFLATION
When inflation affects only a particular part of
the country or covers only one or two goods
like pulses, petrol etc. it is called sporadic
inflation.
COMPREHENSIVE
INFLATION
1. Demand side
2. Supply side
CAUSES RELATED
TO DEMAND
Increase in public expenditure
Deficit financing
Cheap monetary policy
Increase in disposable income
Black money
Increase in investment
Reduction in taxes
Less public borrowing
Increase in population
Increase in exports
CAUSES RELATED
TO SUPPLY
Less production
Artificial scarcity
Taxation policy of the government
Shortage of food grains
Industrial disputes
Technical changes
Lack of raw materials
Natural calamities
Productive set-up
War
EFFECTS OF
INFLATION
Effect on debtors & creditors
Effect on investors
Effect on fixed salaried class
Effect on agriculturists
Effect on savings
Effect on balance of payments
Effect on employment
Effect on taxes
Effect on public debts
RISK
INTERNAL EXTERNAL
BUSINESS BUSINESS
RISK RISK
SYSTEMATIC RISK
The systematic risk affects the entire
market. It means the entire market moves in
the same direction either upward or
downward.
External risk
INTERNAL RISK