Inflation Related Terms
Inflation Related Terms
Deflation
A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending. The opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression. Central banks attempt to stop severe deflation, along with severe inflation, in an attempt to keep the excessive drop in prices to a minimum.
Hyperinflation
Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is a situation where the price increases are so out of control that the concept of inflation is meaningless.
Stagflation
A condition of slow economic growth and relatively high unemployment a time of stagnation accompanied by a rise in prices, or inflation.
Disinflation
A slowing in the rate of price inflation. Disinflation is used - to describe instances when the inflation rate has reduced marginally over the short term. It is used to describe periods of slowing inflation.
Reflation
Reflation s the act of stimulating the economy by increasing the money supply or by reducing taxes. It is the opposite of disinflation. It can refer to an economic policy whereby a government uses fiscal or monetary stimulus in order to expand a country 's output. This can possibly be achieved by methods that include reducing tax, changing the money supply. or even adjusting interest rates. Just as disinflation is considered an acceptable antidote to high inflation, reflation is considered to be an antidote to deflation (which, unlike inflation. is considered bad regardless how high it is).
Recession
When there is a negative growth in the GDP for two consecutive quarters in a financial year, the condition is known as recession.
Agflation
An increase in the price of food that occurs as a result of increased demand from human consumption and use as an alternative energy resource. While the competitive nature of retail supermarkets allows some of the effects of agflation to be absorbed, the price increases that agflation causes are largely passed on to the end consumer. The term is derived from a combination of the words "agriculture" and inflation.
Students / Parents Reviews [10]
My experience was very good with Abhyas academy. I am studying here from 6th class and I am satisfied by its results in my life. I improved a lot here ahead of school syllabus.
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Barkha Arora
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Manish Kumar
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