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Presentation On Inflation: Presented By: Darwin Balabbo Managuelod

This presentation discusses inflation, including its definition, causes, effects, types, measurement, and methods for controlling it. Inflation is defined as a rise in the general price level over time that reduces purchasing power. The main causes are demand-pull factors like excess spending and cost-push factors like increases in production costs. Effects include higher interest rates and unemployment. Methods for controlling inflation include monetary policies by central banks like raising interest rates, and fiscal policies by governments like increasing taxes.

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Julius Macaballug
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58 views13 pages

Presentation On Inflation: Presented By: Darwin Balabbo Managuelod

This presentation discusses inflation, including its definition, causes, effects, types, measurement, and methods for controlling it. Inflation is defined as a rise in the general price level over time that reduces purchasing power. The main causes are demand-pull factors like excess spending and cost-push factors like increases in production costs. Effects include higher interest rates and unemployment. Methods for controlling inflation include monetary policies by central banks like raising interest rates, and fiscal policies by governments like increasing taxes.

Uploaded by

Julius Macaballug
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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PRESENTATION ON

INFLATION
Presented by:
Darwin Balabbo Managuelod
Content

• Introduction
• Definition
• Causes of Inflation
• Effect of Inflation
• Types of Inflation
• Inflation Rate
• Controlling inflation
• Conclusion
Introduction
Meaning of inflation

• Economics inflation is a rise in the general level of price of goods


and services in a economy over a period time. When the general
price level rises each unit of currency buys fewer goods and
services.
Definitions of Inflations

• According websters “an increase in the amount of currency In


circulation,resulting in relatively sharp and sudden fall in its value
and rise in prices:it may be caused by an increase in the volume of
paper money issued or of gold mined,or a relatively increase in
expenditures as when the supply of goods falls to meet the
demand.
• According to Prof. Samuelson “Inflation occurs when general level
of prices & cost are rising”.
Causes of Inflation

• Demand- pull inflation


• Cost-push Inflation
• Built-in inflation
Effects of Inflation

• Investment
• Interest rates
• Exchange rates
• Unemployment
• Stocks
• Decrease in the purchasing power
• Change the allocation income
Types of Inflation

1. On the basis of the degree of the govt control.


• Open inflation
• Suppressed inflation
2. On the basis of political condition
• War-time inflation
• Peace time inflation
3. On the basis of scope
• Sectoral inflation
• Comprehensive inflation
Inflation rate

ate in the Philippines was at 2.3% in September 2020, compared


and August's figure of 2.4%. This was the lowest reading since
ns in the country relaunching COVID-19 restriction measures
us cases. Prices slowed for food and non-alcoholic beverages (1.5%
coholic beverages and tobacco (12.9% vs 17.7%), clothing (1.8%
ng, routine maintenance (3.7% vs 3.9%). In addition, cost of
fell faster (-0.5% vs -0.1%). On the other hand, inflation
g (1.2% vs 0.9%), transportation (8.3% vs 6.3 %), communication
ducation (0.9% vs 0.1%), while was stable for both health (at
nd miscellaneous goods and services (at 2.3%). On a monthly
rose 0.1% in September, after a 0.2% fall in August
Controlling Inflation

• There are broadly two ways of controlling inflation in an economy:


1). Monetary measures
2). Fiscal measures

I). Monetary Measures


The most important and commonly used method to controll inflation is
monetary policy of the central bank. Most central banks use high interest
rates as the traditional way to or prevent inflation.
• Monetary measures used to control inflation include:
(i) Bank rate policy
(ii) CRR
(iii) Open market operations
II). Fiscal measures
Fiscal measures to control inflation include taxation,government expanditures and
public borrowings.
• Fiscal measures used to control inflation include:
(i) Increase in taxes
(ii) Increase in savings
(iii) Surplus budgets
Conclusions

In reality, low inflation rate and an upward economic growth is


never possible. Nevertheless, low inflation rate means slow
economic growth. Whenever, money is in excess, there is bidding by
the consumers due to which the cost of goods escalate.

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