The following article will guide you about the six main types of inflation. The types are: 1. True Inflation and Partial Inflation 2. Deficit-Induced Inflation and Wage-Induced Inflation 3. Creeping (or Persistent) Inflation and Runaway (or Galloping) Inflation 4. Currency Inflation and Credit Inflation 5. Profit Inflation and Commodity Inflation 6. Sellers' Inflation. Type # 1. True and Partial Inflation: [...]
The following points highlight the six major effects of inflation. The effects are: 1. Effects on Distribution of Income and Wealth 2. Effects on Production 3. Effects on Income and Employment 4. Effects on Business and Trade 5. Effects on the Government Finance 6. Effects on Growth. 1. Effects on Distribution of Income and Wealth: The impact of inflation is [...]
The following points highlight the seven major problems of index numbers. The problems are: 1. Inadequate Coverage 2. Choice of Weights 3. Choice of Base Year 4. Inaccuracy 5. Income Variation 6. The Time Factor 7. Comparability. Problem # 1. Inadequate Coverage: The first problem lies in the fact that it is impossible to cover all commodities and their price. [...]