Economic
inflation: is one of the largest economic common terminology is that
despite the widespread use of this term, it does not have an agreement
among economists on its definition and due to the split opinion on
defining the concept of inflation where this term is used to describe a
number of different situations, such as:
The excessive rise in the general price level.
Rising incomes in cash or a component of cash income such as wages or profits.
Rising costs.
Excessive creation of cash balances.
It is not necessary to move these different phenomena in one direction at a time, in the sense that it could happen a rise in prices without accompanying increase in cash income, as that could happen the increase in costs without be accompanied by a rise in profits, is likely happen excessive money creation without being accompanied by a rise in prices or cash incomes.
In other words, the different phenomena that can be given to each of them "inflation" are phenomena independent of each other to some extent, and this independence is the one who raises the confusion in defining the concept of inflation.
The term distinguishes inflation phenomenon called this group consists of expressions include:
Price inflation: any excessive rise in prices.
Inflation income: any high cash incomes such as wage inflation and inflated profits.
Cost inflation: rising costs.
Inflation: any over-issued currency.
Bank credit inflation: inflation in credit.
Hence Some writers believe that when he uses the term "inflation" without discrimination case called this term is intended to be inflated prices because the excessive rise in prices is the sense in which he finishes immediately to mind when he mentions the term inflation.
The excessive rise in the general price level.
Rising incomes in cash or a component of cash income such as wages or profits.
Rising costs.
Excessive creation of cash balances.
It is not necessary to move these different phenomena in one direction at a time, in the sense that it could happen a rise in prices without accompanying increase in cash income, as that could happen the increase in costs without be accompanied by a rise in profits, is likely happen excessive money creation without being accompanied by a rise in prices or cash incomes.
In other words, the different phenomena that can be given to each of them "inflation" are phenomena independent of each other to some extent, and this independence is the one who raises the confusion in defining the concept of inflation.
The term distinguishes inflation phenomenon called this group consists of expressions include:
Price inflation: any excessive rise in prices.
Inflation income: any high cash incomes such as wage inflation and inflated profits.
Cost inflation: rising costs.
Inflation: any over-issued currency.
Bank credit inflation: inflation in credit.
Hence Some writers believe that when he uses the term "inflation" without discrimination case called this term is intended to be inflated prices because the excessive rise in prices is the sense in which he finishes immediately to mind when he mentions the term inflation.
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