BANKING AFFAIRS

Detailed explanation-1: -Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.

Detailed explanation-2: -Inflation can be defined as a persistent rise in the general price of goods and services of common or daily use-such as clothing, food, fuel, transport, etc-which results in an increase in the cost of living. Inflation is the measure of change in average price of services and commodities, done at regular intervals.

Detailed explanation-3: -Inflation that continues to be high over a prolonged period of time is known as persistent inflation. Also, persistent inflation refers to persistent increases in price changes.

Detailed explanation-4: -In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.

Detailed explanation-5: -According to KEYNES, “The rise in the price-level after the point of full employment is true inflation.” These are defined on the basis of following circumstances: 1. When volume of currency is increasing and production is fixed.