Inflationary Measures in India
P.AMUTHA
RESEARCH SCHOLAR
RATHNAVEL SUBRAMAINAM COLLEGE OF
ARTS AND SCICENCE (AUTONOMOUS), SULUR.
---------------------------------------------------------------------------------------------------------------------
INFLATIONARY MEAURES IN INDIA
ABSTRACT
Inflation is a determinant in functioning of any economy. In our country India has mixed economy model that comprises both capitalism and socialism. In our country, India uses the Wholesale Price Index (WPI) to calculate inflation rate. Inflation is calculated on a weekly basis. The present day process being used in India has been Wholesale price index (WPI) while several other developed countries adopt the Consumer Price Index (CPI) to calculate inflation. The demographics and structures of India don’t permit it to adopt the consumer price index system of measuring inflation. Moreover Consumer Price Index is calculated on a monthly basis while the wholesale price index is calculated on a weekly basis.
INTRODUCTION:
Inflation is a determinant in functioning of any economy. In our country India has mixed economy model that comprises both capitalism and socialism. Inflation’s effects on an economy are various and can be simultaneously, positive and negative. Negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation is rapid enough, shortage of foods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include ensuring that central banks can adjust real interest rates and encouraging investment in non-monetary capital projects.
Meaning of inflation: Inflation is a rise in the general level of prices of goods and services is an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services, that is, a decrease in the purchasing power of the currency.
Definition of
RESEARCH SCHOLAR
RATHNAVEL SUBRAMAINAM COLLEGE OF
ARTS AND SCICENCE (AUTONOMOUS), SULUR.
---------------------------------------------------------------------------------------------------------------------
INFLATIONARY MEAURES IN INDIA
ABSTRACT
Inflation is a determinant in functioning of any economy. In our country India has mixed economy model that comprises both capitalism and socialism. In our country, India uses the Wholesale Price Index (WPI) to calculate inflation rate. Inflation is calculated on a weekly basis. The present day process being used in India has been Wholesale price index (WPI) while several other developed countries adopt the Consumer Price Index (CPI) to calculate inflation. The demographics and structures of India don’t permit it to adopt the consumer price index system of measuring inflation. Moreover Consumer Price Index is calculated on a monthly basis while the wholesale price index is calculated on a weekly basis.
INTRODUCTION:
Inflation is a determinant in functioning of any economy. In our country India has mixed economy model that comprises both capitalism and socialism. Inflation’s effects on an economy are various and can be simultaneously, positive and negative. Negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation is rapid enough, shortage of foods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include ensuring that central banks can adjust real interest rates and encouraging investment in non-monetary capital projects.
Meaning of inflation: Inflation is a rise in the general level of prices of goods and services is an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services, that is, a decrease in the purchasing power of the currency.
Definition of