INFLATION
DEFINITION OF
INFLATION
By
inflation, in ordinary language, we mean a process of raising prices. A situation is described as inflationary when
either the prices or the supply of money are raising, because in practice both
will rise together. In the Keynesian sense, true inflation begins when output
the elasticity of supply output in response to increase in money supply has
fallen to zero or when output is unresponsive to changes in...