concept and definition of inflation

in general, increase in the price of goods and services in the economy is known as inflation. the main cause for inflation is the decrease in the value of money or the increase in the price of goods. the main reason for this is the increase in the monetary expansion. if the quantity of money used as the medium of exchange in the economy is more than the quantity of goods and services, then inflation will be created in the economy. this will result in excessive increase in the demand for goods and services. as a result, price of goods and services will also increase. due to disequilibrium between demand for and supply of goods, economic disequilibrium will be created in the economy.
other economists have put forward the concept that the inflation is related with employment and income. in reality, the relationship of inflation is with money various goods, employment and income.
different economists have given their own views in relation to inflation.while explaining their views they taken price increase and monetary values as the main reasons. according to modern economists, there are two types of inflation. they are demand pull inflation and cost push inflation. various definitions of inflation as given by different economists can be presented as follows
in any economy, if the goods and services increase in proportion with the increase in the quantity of money then this cannot be termed as inflation. but in the state, when quantity of money constant, if wage and profit increase, then inflation will occur, inflation occurs if demand for goods and services increase at a higher rate than the production of goods and services because the price of goods and services increase as the demand for such goods and services increases. therefore, in the time of inflation the price of goods will increase very rapidly.