Fisheries Economics

6.1.5. Inflation and deflation

Inflation is a global phenomenon as it is experienced by every country at some point of time or the other. The Great Depression that choked the western economies, notably the USA, during the nineteen thirties, engaged the attention of economists fully. Since then control of inflation became more important in the growth and development of an economy.

Inflation is defined as a sustained and appreciable rise in the general price level. The general rise in the price level means a fall in the money value. Inflation is usually associated with rising activity and employment.