1. INFLATION

2. MEANING OF INFLATION In simple words, inflation means continue increase in general price level. Inflation has positive relationship with the supply of money, whereas it has negative relationship with value of money.

3. According to Prof. Roman, “Inflation is the process of price increase.” Ankley, Gardner, “Inflation is a persistent and appreciable rise in general level or average of prices.”

4. Types of Inflation On the basis of Full Employment Level On the basis of Degree of Government Control On the basis of Time Period On the basis of Scope On the basis of Rate of Inflation On the basis of Process of Causes

5. THEORIES OF INFLATION Demand Pull Inflation Cost Push Inflation