What is Post War Inflation?


0

Tendency of inflation rising price after the war mainly due to two reasons firstly government has to spend large amounts on the repair and  reconstruction of damaged properly like bridge, railways lines etc. secondly taxes rises  during the war are abolished and loans taken from public are repaid.  Consequently money supply with the public increases but production of goods and services does not increase in some proportion. Thus prices continue to use after war.

 


Like it? Share with your friends!

0
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected].

6 Comments

Facebook comments: