1.the act of inflating or state of being inflated 2.(Economics)economicsa progressive increase in the general level of prices brought about by an expansion in demand or the money supply (demand-pull inflation) or by autonomous increases in costs (cost-push inflation). Comparedeflation ...
inflation (redirected fromInflation (economics)) Dictionary Thesaurus Financial Encyclopedia [in-fla´shun] distentionortheactofdistending,withair,gas,orfluid. Miller-KeaneEncyclopediaandDictionaryofMedicine,Nursing,andAlliedHealth,SeventhEdition.©2003bySaunders,animprintofElsevier,Inc.Allrightsreserved. ...
The causes of inflation. (a) demand is assumed 1. Basic view: when the aggregate demand for goods and services exceeds the total supply available at current prices, prices will rise, leading to inflation. The "theory of demand" in Keynesian economics The theory holds that when the economy ...
There are a variety of different causes for inflation. The primary cause of macroeconomic inflation is an increase in the money supply. As “more money chases fewer goods” the price of the available goods is bid up. So simply increasing the money supply will increase prices. SeeInflation Caus...
Definition:Inflation is the devaluation of a currency marked by a sustained trend of rising prices in the economy. In other words, the value of each dollar is less, which causes the general price of goods to increase. This is typically caused by an increase in the money supply relative to...
Within the context of economics, Inflation is a persistent increase in the general price level of goods and services in an economy. The main drivers of inflation in an economy are too much money chasing too few goods (demand-pull inflation) and/or an increase in costs of production (cost-...
Learn what inflation is and understand the different causes of inflation. Explore who suffers and benefits from inflation and its relationship with...
Macroeconomics is a branch of economics that involves the study of the entire economy as well as the global economy. Some of the variables studied in macroeconomics are inflation, the aggregate demand, unemployment rate, and interest rate.
In inflation accounting, one records price changes that affect the purchasing power of current assets and the value of the company's long-term assets and liabilities. This can provide a more accurate picture of a company's value. It is used to supplement a company's ordinary financial ...
Because wages tend to be "sticky-down", real wages are instead eroded through the effects of inflation. A key piece of Keynesian economic theory, "stickiness" has been seen in other areas as well such as in certain prices and taxation levels. ...