types of inflation: There are three major types of inflation: 11-4.1. New Keynesian Theories of Inflation and Output A thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy University of Western Sydney 2012 By Cung Cao . en d of th e exponential expansion (inflation) th e energy of th e unstable vacuum (of a classical scalar field) transform s into th e energy of hot d en se m atter, an d th e su b seq u en t evolution of th e universe is described by th e usual h o t universe theory. Cost push inflation: inflation caused by sudden decrease in the supply of goods, which would increase goods prices. The first two explanations for inflation find many adherents among American economists, whereas the third is more common among some British economists. Money loose purchase power, people hold as little money as possible. What does Inflation mean? Here we examine theories that reject the universal validity of perfect competition and link inflation with alternative, more realistic structures and institutions. Theories of inflation 1. There is another important theory of inflation known as structural inflation which explains inflation in the developing-countries in a slightly different way. Types of Inflation from the quantitative point of view Creeping inflation the rate of inflation doesn’t exceed the rate of production growth, Creeping inflation is < 10% Galloping inflation the rate of inflation exceeds the rate of production growth, Galloping inflation is from 10% to 100%. Inflation increases Purchasing power of money decreases 3. MONETARY THEORY OF INFLATION. Producers for these goods will increase the costs The structuralists argue that increase in investment expenditure and the expansion of money supply to finance it are the only proximate and not the ultimate factors responsible for inflation in the developing countries. Monetarists hold that inflation is a purely monetary phenomenon that can only be produced by expanding the money supply at a faster rate than the growth of capacity output. The most important inflation is called demand-pull or excess demand inflation. TYPES OF INFLATION There are four main types of inflation with four different causes. A 7. The Relationship Between Inflation and Unemployment In most years, inflation tends to rise when unemployment falls, and vice versa. The term inflation is usually used to indicate a rise in the general price level , though one can speak of inflationary movements in any single price or group of prices. Inflation and Market Structure (59 pages) This is the third in a series of three essays which explore modern theories for inflation. This paper, mainly attempts to review and analyze the competing and complementary theories of inflation. 11-4.2. 2 Statement of Authentication The work presented in this thesis is, to the best of my knowledge and belief, my own Inflation is defined as a continuous increase in the general level of prices for goods and services. Economic theory Theories of Inflation Prepared & Presented by:- Md. Ahtezaz Parways (26) Pratyush Kr. Mishra (45) 2. A survey of the new theories of inflation that have developed over the past two decades in response to the inflationary pressures experienced by Western countries examines the shifting debate from explaining inflation as a "causal" process to explaining its increase as a result of constantly changing expectations. Furthermore, inflation itself may also cause future inflation. 3. Demand pull inflation: inflation from high demand for goods and low unemployment. 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