What is inflation and how depression period arises in 2008

The term "inflation" originally referred to increases in the amount of money in circulation. In economics, inflation means prices of goods and services increases in an economy during a period of time. As the price increases value of the money is decreases and people is not able to satisfy their daily needs. This is the main reason to increase the poverty in our country. It is the bad effect not only in the one country but whole of the economy. Inflation includes a decrease in the real value of money.
When the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. When price are increasing day by day then it is very harmful for our economy. There is always a negative relation between price and demand. When price increases then demand decreases. When price decreases then demand increases.


                                        
                           

Who is lehman Brothers?
              


Lehman brother are the big investor or bankers in the USA. But in September, 2008 he was suffered from various losses. In History, it is the largest bankruptcy of Lehman brother in USA. It is the great depression period of 2008. On September 10, 2008, Lehman suffered a loss of $3.9 billion. when depression period occurred then it effects on whole of the economy.



         Lehman Brother's

Depression period of 2008


In America and Canada, people are take interest to invest in the property and they are not take interest in saving. People also take loan from bank to invest in the property. So that price increases day by day. When prices increases day by day then bank also invested in this property. During the depression period 2008 suddenly price of the property decreases. And people sale the property to the other person but person not purchased the property reason of decreased price. Price decreases at a very high rate. It is the largest bankruptcy of Lehman brother in USA. It is the great depression period of 2008. During this period, it effects on whole of the economy.