Inflation, Deflation and

Stagflation
Dr Shivani Mohan
Assistant Professor Economics
Chanakya National Law University, Patna
 Meaning and Types of Inflation
Chicago School-
“Inflation is always and everywhere a monetary phenomenon… and can be
produced only by a more rapid increase in the quantity of money than output”
-M. Friedman
“as a persistent and appreciable rise in the general level of prices
-Shapiro
 Magnitude of Inflation
1. On the basis of Price Rise
• Creeping Inflation
• Walking Inflation
• Running Inflation
• Hyper Inflation
• According to scope
a) Comprehensive
b) Partial
• According to Government Control
a) Open
b) suppressed
 Inflationary Gap
• Meaning
• Causes
• Removal
• Significance
 Demand Pull Inflation
• Factors causing Demand Pull Inflation
• Monetarist Opinion
• Keynesian View
• Factors affecting Demand pull inflation
 Cost-Push Inflation
• Factors Causing Cost-Push Inflation
• Demand Pull Vs. Cost Push Inflation
• Phillips Curve and Inflation
• Measures to Control Inflation
a) Monetary Policy
b) Fiscal Policy
• Inflation and Developing Economies
 Causes of Inflation
• Factors affecting demand
• Factors affecting supply
 Measures to control Inflation
• Monetary policy
• Fiscal policy
• Other measures
 Deflation
• Meaning
• Causes of Deflation
• Effects of Deflation
• Control of Deflation
 Stagflation
• Recent term in economic Literature (1970s)
• Inflationary Recession
• Stagnancy +Inflation=Stagflation
• Causes

Stagflation of 1970s in Western countries

• https://www.youtube.com/watch?v=ICBy0tTtgR4
 Measures to control stagflation
• Anti-inflationary income policy
• Reduction in the marginal tax rates
• Manpower policies
Thank you!