Inflation essay questions

Essay on Inflation: A sustained rise in the prices of commodities that leads to a fall in the purchasing power of a nation is called Inflation. Although inflation is a part of the normal economic phenomena of any country, any increase in inflation above a pre-determined level is a cause of concern. The causes of inflation are many.

To some, a creeping or mild inflation is one when annual price rise varies between 2 p.c. and 3 p.c. If a rate of price rise is kept at this level, it is considered to be helpful for economic development. Others argue that if annual price rise goes slightly beyond 3 p.c. mark, still then it is considered to be of no danger.

Essay on Inflation! Inflation and unemployment are the two most talked-about words in the contemporary society. These two are the big problems that plague all the economies. Almost everyone is sure that he knows what inflation exactly is, but it remains a source of great deal of confusion because it is difficult to define it unambiguously.

Economic essays on inflation. UK inflation since 1989. Definition – Inflation – Inflation is a sustained rise in the cost of living and average price level. Causes Inflation – Inflation is caused by excess demand in the economy, a rise in costs of production, rapid growth in the money supply.