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nested vs inner classes

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What is the difference between nested and inner classes? Is it that nested classes are static inner classes??
Why do we need static inner class?
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A nested class is sort of an inline class that extends an interface and gets defined right in the middle of your code as you need it. It is probably best used for defining simple/short tasks like creating an action listener for a component. here is an example:

This allows you to set up event responses to a component without haveing to create a separate class to handle the job. It is static, but can only be used by the method where it is defined
An inner class is simple a second class defined inside a primary class like this:

InnerClass usage follows the same usage restrictions as methods based on its public/private settings. To refer to it from some other class you have to call it like this:

Hope this helps
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