By inflation, in a very simple language or meaning we mean a process of rising prices. A situation is described as inflation when either the prices or the supply of money are rising. In the key Nesion sense, when there exists a state of full employment, the conditions will be clearly inflationary because output is irresponsive to change in money supply and since we do not subscribe to the classical views that there is full employment, we can say that money supply increase. If other party increase of output and it partly fixed in rise in price. And when we supply of far behind. His rise in prices is described as inflationary.
Definition : Different economists have given different definition of inflation from tome to time:-
a) According to Samulson “ By inflation means a time of generally rising price.”
b) According to Shapins”Inflations is simply a persistent and appreciates rise in general price level.”
Thus inflation we can say is that the situation in the economy where price of all commodities goes rise value of money.
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