Tag Archives | Inflationary Gap

Inflationary Gap: Meaning, Elimination, Examples, Significance and Limitations | Economics

In this article we will discuss about:- 1. Meaning and Explanation of Inflationary Gap 2. Elimination of Inflationary Gap 3. Inflationary Gap and Inflation Rate 4. Significance 5. Limitations 6. Inflationary and Deflationary Gaps 7. Examples. Meaning and Explanation of Inflationary Gap: Keynes, in his pamphlet entitled How to pay for the War, 1940 explained inflation in terms of inflationary [...]

By Suman K|2018-08-13T06:52:03+05:30August 13, 2018|Inflationary Gap|Comments Off

Notes on the Inflationary Gap

In his pamphlet 'How to pay for the War' published in 1940, Keynes explained the concept of the inflationary gap. It differs from his views on inflation given in his General Theory. In the General Theory, he started with underemployment equilibrium. But in How to Pay for the War, he began with a situation of full employment in the economy. [...]

By Shivam N|2016-08-18T11:11:51+05:30August 18, 2016|Inflation|Comments Off