What is inflation? Meaning and definition and types
In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. DEFINITION As per Johnson," Inflation is an increase in the quantity of money faster than real national output is expanding." According to Samuelson--Nordhaus, " Inflation is a rise in the general level of prices." TYPES 1) Creeping inflation (1-4%) When the rate of inflation slowly increases over time. For example, the inflation rate rises from 2% to 3%, to 4% a year. Creeping inflation may not be immediately noticeable, but if the creeping rate of inflation continues, it can become an increasing problem. 2) Walking inflation (2-10%) When inflation is in single digits – less than 10%. At this rate – inflation is not a major problem, but when it rises over 4%, Central Banks will be increasingly concerned. Walking inflation may simply be referred to as moderate inflation. 3) Running inflation (10-20%) When inflati