Causes and Remedies of Inflation in India Inflation by definition involves rise in prices of goods and services. Inflation is usually caused by demand outstripping supply of goods and services. It can also be caused by suppliers/traders of certain goods and services (or speculators in goods) hiking their prices in order to effectively increase their profits/incomes. Such attempts to increase their incomes/profits may also be‚ in many cases‚ through hoarding or speculation
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Investment in India since 1991: Trends‚ Challenges and Prospects M.K. Dutta‚ Assistant Professor (Economics)‚ Department of Humanities and Social Sciences‚ IIT Guwahati‚ Assam‚ India E-mail: mkdutta@iitg.ernet.in & G.K. Sarma‚ Research Scholar (Economics)‚ Department of Humanities and Social Sciences‚ IIT Guwahati‚ Assam‚ India E-mail: g.sarma@iitg.ernet.in (An earlier version of the paper was published as Dutta‚ M.K. and Sarma‚ G.K. (2008) ‘ Foreign Direct Investment in India in the
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Inflation: Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises‚ every dollar you own buys a smaller percentage of a good or service. The value of a dollar does not stay constant when there is inflation. The value of a dollar is observed in terms of purchasing power‚ which is the real‚ tangible goods that money can buy. When inflation goes up‚ there is a decline in the purchasing
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Table of Contents I. II. III. INFLATION IV. V. MEANING VI. Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. The price of only one commodity rising but the price of other commodities falling or the increase in the price of a commodity during a day is not termed as inflation. VII. For example‚ let’s consider that there are only two commodities: bread‚ and paper money printed by the government. In a year when there is
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Causes and effects of inflation You are Here: Home > Managerial Economics > Causes and effects of inflation Share Definition of inflation and it’s types Causes of Inflation 1. Over- Expansion of Money Supply: Many a times a remarkable degree of correlation between the increase in money and rise in the price level may be observed. The Central Bank (India’s RBI) should maintain a balance between money supply and production and supply of goods and services in the economy. Money supply exceeds
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perception of INFLATION in Europe Jorge Yébenes Lorena Zamora UEK 2012 INTRODUCTION Definition of Inflation Inflation is the phenomenon that consists of continued and general growth on the price of goods and services in an economy in a certain period of time. It doesn’t follow a cyclical cause and does not affect either not an individual or a few. How can we measure the “inflation”? To measure inflation‚ we use a "general index‚" a ratio‚ percentage expression. We call it Inflation rate which
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Chapter 1 Introduction to Capital Market 1. Capital Market Capital markets are financial markets for the buying and selling of long-term debt- or equity-backed securities over one year is traded. Security includes- shares‚ debentures‚ bonds etc. A key division within the capital markets is between the primary markets and secondary markets. In primary markets‚ new stock or bond issues are sold to investors‚ often via a mechanism known as underwriting. The main entities seeking to raise
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What are causes of inflation in China and how to cope with inflation? In the past decades‚ China has experienced a rapid economic growth. However‚ Chinese people have been greatly affected by the inflation caused by such rapid economic development. Compared with other years in 2000s‚ the inflation rate in 2004‚ 2007‚ 2008 and 2010 were quite higher which more than 3 percent (Zhang‚ 2011). And in 2007 only‚ the Consumer Price Index (CPI) increased by nearly 5% from 2.2% to over 7% (Anderson‚ 2008)
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INFLATION : A sustained rise in the prices of commodities that leads to a fall in the purchasing power of a nation is called inflation. Although inflation is part of the normal economic phenomena of any country‚ any increase in inflation above a predetermined level is a cause of concern. How is inflation measured Inflation in India is measured through a WPI ( wholesale price index ) . In India‚ the wholesale price index (WPI)‚ rate consisted of three main components - primary articles‚ which
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INTRODUCTION Since the inception of civilization‚ man has been faced with the basic economic problem – scarcity! The natural habitat within which we live has a limited ability to produce and provide for the human race; whose growth is exponential. From this realization‚ economics was born. To this extent‚ Lionel Robbins defined economics as ‘‘a science which studies human behavior as a relationship between ends and scarce means which have alternative uses (Becker‚ 1996)’’‚ Cameron Rondo further
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