From the view point
of inflation intensity, we can distinguish between creeping and hyperinflation.
of inflation intensity, we can distinguish between creeping and hyperinflation.
Creeping
Inflation
Inflation
This refers to a
slow but persistent upward movement in the general price level over long
periods of time. In other words, the condition of general rise in price
persists for a long time but at a moderate and fairly steady pace.
slow but persistent upward movement in the general price level over long
periods of time. In other words, the condition of general rise in price
persists for a long time but at a moderate and fairly steady pace.
Hyper
Inflation
Inflation
Also called runaway
inflation, this refers to sudden and large increase in the general price level.
It is generally characterized by accelerating rates of increase in prices (with
prices rising by up to 50% or more every month).Hyper inflation can lead to
rapid deterioration in the value of a nation’s currency and erode the confidence
reposed in it by the general public. Unlike creeping inflation however, it
usually last for-short periods of time.
inflation, this refers to sudden and large increase in the general price level.
It is generally characterized by accelerating rates of increase in prices (with
prices rising by up to 50% or more every month).Hyper inflation can lead to
rapid deterioration in the value of a nation’s currency and erode the confidence
reposed in it by the general public. Unlike creeping inflation however, it
usually last for-short periods of time.