inflection
DESCRIPTION
TRANSCRIPT
INFLATION SOLUTION: MORE HARM THAN
GOOD
A sustained increase in the general level of prices of goods and services
Every Rupee OR Dollar you own buys a smaller percentage of a good or service
TYPES OF INFLATION
Open Inflation +
Suppressed Inflation -
CAUSES OF INFLATION
Demand-pull inflation theory
Cost-push inflation theory
Supply of Money
EFFECTS OF INFLATION
Hoarding
Distortion of relative prices
Increased risk - Higher uncertainties
Existing creditors will be hurt
Fixed income recipients will be hurt
Increased consumption ratio at the early stages of inflation
Lowers national saving
Illusions of making profits
Currency debasement
Causes an increase in tax bracket
MEASURES TAKEN BY GOVERNMENT TO CURB INFLATION
Monetary Measures
Control over money
Credit control
Fiscal Measures
Decrease in public expenditure
Delay in payment of old debts
Increase in taxes
Liberalisation of imports
Ban on exports
A cut in Excise duties and Customs duties
SOLUTION MORE HARM THAN GOOD
OUR PERSPECTIVE
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