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A Detailed Study On Indian Inflation
A Detailed Study On Indian Inflation
FL
AT
ION
CAUSES OF INFLATION
Demand
Cost
pull inflation
push inflation
wages
Rising
Import prices
Declining
Higher
productivity
taxes
CPI INFLATION
14.97
9.7
5.57
2005
6.53
2006
9.47
9.47
6.49
5.51
2007
9.13
2008
2009
2010
2011
2012
5.86
2013
2014
12.11
8.87
8.32
5.79
10.92
9.3
6.39
6.37
4.25
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
EFFECTS OF INFLATION
Redistribution of
Wage Earners
Effects
on
Production
Other Effects
Government
Balance of Payments
9.49
4.51
4.35
4.64
2.52
1.6
INDIA
CHINA
BRAZIL
SOUTH AFRICA
CHILE
MEXICO
balance of payments
Causes uncertainty and falling investment
Createunemployment
Distorts theprice mechanism
Creates money illusion
Bad for the
Monetary Measures
Credit control
Demonetisation of
Currency
Fiscal Measures
Increase in
Public
Taxes
Debt
Other Measures
Wage Policy
Rational
Rationing
export restriction
Imposed minimum stock price
Released stockpiles of staples
Extend a line of credit to state governments
Emendation of state laws
Brought potatoes and onions under purview of ESMA
Imposed
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