Inflation in India
“A REPORT ON INFLATION IN INDIA AND SUGGESSTIONS TO CURB THE INFLATION”
By: VIKRAM.G.B 2nd M.COM V.D.C
ABSTRACT:
India is one of the trillion dollar economy in the world and known for its unique qualities which is turning itself into a hot destination for foreign investors and there are also certain problems which is retarding its economic growth as of today among many major economic problems INFLATION is also one and in past recent months it went to double digit also. In this report mainly the actual meaning of the inflation, major reasons for steep hike in the price level, effects of inflation, how it is retarding the growth of our nation and suitable suggestions have been made to curb the inflation.
INTRODUCTION:
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy.
DEFNITION OF INFLATION:
Different economists have defined the term ‘inflation’ in different ways.
Basically inflation can be defined in two ways. Earlier writers based their definition on the well known Quantity theory of money and explained inflationary trends in prices in terms of an increase in the supply of money.
Irving Fisher is of the view that the prices are affected much more by the supply of money than by supply of goods.
The second approach of inflation has been put forward by economist like Wicksell, Bent Hansen and J.M. Keynes. According to this approach, “general price level is determined by the total demand for and total supply of the group of goods concerned, the prices of which determine the general price level”. And the inflation is defined as that situation in which the total demand for goods, indicated by the volume of money offered,
By: VIKRAM.G.B 2nd M.COM V.D.C
ABSTRACT:
India is one of the trillion dollar economy in the world and known for its unique qualities which is turning itself into a hot destination for foreign investors and there are also certain problems which is retarding its economic growth as of today among many major economic problems INFLATION is also one and in past recent months it went to double digit also. In this report mainly the actual meaning of the inflation, major reasons for steep hike in the price level, effects of inflation, how it is retarding the growth of our nation and suitable suggestions have been made to curb the inflation.
INTRODUCTION:
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy.
DEFNITION OF INFLATION:
Different economists have defined the term ‘inflation’ in different ways.
Basically inflation can be defined in two ways. Earlier writers based their definition on the well known Quantity theory of money and explained inflationary trends in prices in terms of an increase in the supply of money.
Irving Fisher is of the view that the prices are affected much more by the supply of money than by supply of goods.
The second approach of inflation has been put forward by economist like Wicksell, Bent Hansen and J.M. Keynes. According to this approach, “general price level is determined by the total demand for and total supply of the group of goods concerned, the prices of which determine the general price level”. And the inflation is defined as that situation in which the total demand for goods, indicated by the volume of money offered,