Types of Inflation According to Their Nature
The inflation rate can differ from one country to another or within one country at different times. On the basis of the large inflation rate, it can be divided into three categories, i.e.
Creeping (creeping inflation)
Characterized by a low inflation rate (less than 10% per year). Price increases are slow, with a small percentage and in a relatively long period.
medium inflation (galloping inflation)
The rate is relatively large in a relatively short period of time and has a very accelerating effect (prices on a weekly or monthly basis) the effect on the economy is greater than creeping inflation.
high inflation (hyper inflation)
is the most severe inflation as a result - prices go up 5 or 6 times. People no longer want to save money because the value of money has fallen so sharply that it wants to be exchanged for money so that the velocity of money is getting faster and prices are accelerating. Usually this situation arises when the government experiences a budget deficit that is spent and covered by printing money.
9. Rimsky K. Judisseno
According to Rimsky K. Judisseno revealed that inflation is one of the events in which monetary is shown from a tendency of rising prices for goods in general. In this event, a decrease in the value of the currency is occurring.
10. S. Sukirno
According to S. Sukirno revealed that inflation is a process when a price increase that applies to the economy.
11. Weston and Sopeland
According to Weston and Sopeland revealed that inflation is a state of the economy that is being hit by an increase in the highest price level and cannot be prevented or controlled again.
12. Winardi
According to Winardi revealed that inflation is a period of a certain period, which occurs when a buying power against monetary unity decreases. In terms of inflation, it can arise if the value of money deposited will circulate more than the amount of goods or services offered.
13. Gerald J. Thuesen and W. J. Fabrycky
According to the two revealed that inflation is a condition that illustrates a change in the price level in an economy. There is no country that has never experienced inflation, even developed countries have experienced inflation at any time.
Types of Inflation According to the Cause
The inflation rate can differ from one country to another or within one country at different times.
Demand-pull inflation
This inflation stems from an increase in total demand (aggregate demand), while production is in a state of full employment or nearing full employment. In a state of almost full employment, an increase in total demand in addition to an increase in price can also increase output.
Cost-push inflation
In contrast to demand-pull inflation, cost-push inflation is usually characterized by rising prices and falling production. So, inflation is accompanied by a recession. This situation arises usually starts with a decrease in the total supply (aggregate supply) as a result of increased production costs. This increase in production costs can arise due to several factors including:
successful trade union struggles to counter wage increases
A monopolistic industry, managers can use their power in the market to determine (higher) prices.
Increase in prices of industrial raw materials.
Effects arising from inflation
The Following Are The Effects Of Inflation.