Issues: » Understand the concept of inflation and its causes. » Critically analyze the various initiatives taken by the Indian government and the RBI to address inflation. » Analyze the significance of Government and Central Bank in controlling inflation and the possible effect of their initiatives on the economy. Keywords: Indian economy‚ Inflationary trends‚ Effect of High Growth on Inflation‚ Wholesale or Consumer Price Index‚ Foreign Exchange rate‚ Bank Rate‚ Cash Reserve Ratio‚ Monetary
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Topic –: “Monetary Policy and Inflation dynamics” Objective - : To study the Monetary policies developed by central bank to control the inflation & it’s implications on Indian economy Introduction -: Inflation and monetary policy are closely related concepts wherein the latter can be used efficiently to reduce the effect of the former. Inflation is the rise in prices and wages that reduces the purchasing power of money. Monetary policy is the regulation adopted by the central bank‚ which
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Inflation is the overall level prices of goods and services rapidly increase in an economy over a period time. When the overall price level increases‚ it will affect the decreasing purchasing power of the currency. An economic inflation is not occurs suddenly‚ it is causes by three types of inflation. The first cause is demand-pull inflation results from increases in aggregate demand on goods. The excess demand will cause the level price of goods rises. This is commonly described as "too much
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Grade Inflation: Does it Still Exist? The first question one may have is what is grade inflation? Grade inflation has proven to be a current epidemic that has grown tremendously over the past few years. Grade inflation may define as the increase over time of academic grades‚ and progressively faster than any real increase following to standards. Grade inflation is the phenomenon that has been occurring in universities since the 1960’s‚ this is the continued rise in the number of higher grades assigned
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education. This process is now commonly known as grade inflation. Similar to inflation in the financial sense‚ grade inflation does have one glaringly adverse effect. Just like the dollar loses its value when the market is flooded with too many of them‚ A’s are being devalued with every unearned one that is given out. This phenomenon has recently become an increasingly popular topic among academics. Stuart Rojstaczer‚ author of “Grade Inflation Gone Wild‚” and creator
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The Effectiveness of Monetary Policy and Inflation Management through the Interest Rate Channel in Sri Lanka 1. Introduction Monetary policy comprises the rules and actions adopted by the central banks to achieve their objectives. In most countries the primary objective of the monetary policy is price stability. The Central Bank of Sri Lanka (CBSL) has two core objectives: (1) maintaining price and economic stability and (2) maintaining financial system stability (Central Bank of Sri Lanka 2012
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Is the death of one worth the safety of another? Many would say no. The testing of animals is extremely unfortunate‚ but also necessary. Due to the fact that animals are perfect test subjects‚ they have helped find cures for many diseases and have made products safer for not only human use but animals as well. According to the California Biomedical Research Association‚ almost every medical breakthrough in human and animal health has been through a direct result of animal research for over a hundred
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How inflation affect the common man? In: Inflation [Edit categories] The Economist MagazineEconomistSubscriptions.com Get a World view Every Week. 12 Issues for Rs. 500 only! Ads Answer: Inflation is the overall increase in cost of products and services. Increase in taxes and fees leads to inflation. Inflation also generally causes due to scarcity. When the cost of business increases‚ the prices of the products increases and this abrupt increase‚ the income rate supposedly goes down. These
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The evils of idleness Human beings have become the rulers of this planet. We have spread ourselves to all parts of the world. Whether it is the desert‚ mountains‚ forest‚ oceans or caves‚ humans have been able to live and prosper in all these conditions. The reason for this is our ability to adapt to our environment. It is the main difference between humans and other animals on the earth. So if we are to continue to survive and prosper‚ we must continue to adapt. For this we cannot be idle. To
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parity states that‚ between two nations‚ the a) inflation rates are unrelated b) exchange rate differential reflects the inflation rate differential c) inflation rate is smaller in weaker currencies d) the interest rate is greater than the inflation rate during depreciations Ans: b Section: Purchasing power parity Level: Easy 4.3 The Fisher effect states that the _________ rate is made up of a real required rate of return and an inflation premium. a) nominal exchange b) real exchange
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