Inflation

PANNASASTRA UNIVERSITY OF CAMBODIA
SILA SAMĀDHI PAÑÑĀ

I University of Cambodia
Pannasastra NFLATION
Sila

SamādhiPaññā

Course Title: Fundamentals of Economics
Professor

: Dr. Meng Channarith

Prepared by: Sun Sokhet, Phal Keomorokod,
Im Meng and Chuop Vichet

INFLATION

Course Title: Fundamentals of Economics
Professor: Meng Channarith

April 09, 2013

CONTENTS
Acknowledgement .....................................................................................................................ii
Introduction .............................................................................................................................. iii
Chapter One: Nature of inflation ............................................................................................... 1
1.1. Definition.................................................................................................................................. 1
1.2. Inflation measurement ............................................................................................................ 1
Chapter Two: Types of inflation ................................................................................................ 4
2.1. Demand-pull inflation ............................................................................................................. 4
2.2. Cost-push inflation .................................................................................................................. 5
Chapter Three: Impacts of inflation ........................................................................................... 7
3.1. Redistribution income and wealth......................................................................................... 7
3.2. Loss of export competitiveness ............................................................................................. 8
3.3. Less investment confident

Bibliography: wants. In traditional era, one product has been exchanged with another product without the existing of currency in the economy which is called barter economy (Starr, 1972) April 9, 2013 CHAPTER ONE: NATURE OF INFLATION over a given period of time (Heerah-Pampusa, Khodabocus, & Morarjee, 2006). Similarly, Mankiw (2009) said that the use of term inflation is a situation in which there is a rising in quantity theory of money is called a classical theory of inflation. However, Davidson (2011) has critiqued to those economists about the use of term general or overall price level to define experience the extraordinary rising of inflation which is called hyperinflation (Mankiw, 2009) April 9, 2013 a fixed basket of goods and services that are purchased by urban consumers in a specific