(Muhammad Ali, )
Inflation is one of the major problems of the world. It is an economic term. It means any increase in the supply of money. Inflation occurs when the state bank expands the money supply or money in circulation. If there is no increase in the supply of goods and services, expansion of the money supply raises the general level of prices. In other words inflation describes a fall in the purchasing power of the people. There are many causes of inflation. Faulty policies of the government are one of the most important causes of inflation. Sometimes, to meet the defict government issues more currency and the supply of currency in circulation increases but the supply of services and goods remains the same, this results in price hike. The import of unnecessary good is another cause of inflation. The inflow of foreign aid increases the inflation. And when the industrial and agricultural production decrease a shortage of goods is created and this results in increase of price. INFLATION can be checked by taking certain steps. First of all the government must frame the reasonable policies. It must keep an eye on the imports of the country and it must ban the unnecessary goods. It should be careful in issuing the new currency notes, to avoid the inflation.