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Essay: Types of Inflation | Term Paper Queen

Sample Essay

One of the other types of inflation is monetary or financial inflation. The government tends to print money to equal international rates. This happens due to excessive governmental expenditure for which budget discrepancy is a logically better substitute (Au, 2007)

The most dangerous level of inflation is the foreign exchange inflation. It is also known as the hyper inflation level  (Siklos, 2000). This level represents a radical fall against other international coinage, and as a consequence ascends the prices of imports and thus the entire price level. A recent example of such can be seen in Zimbabwe, where a single note of US dollar equals to a bag of their national currency.

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