Today I read couple articles related to Inflation in Business Standard & thought of sharing with you guys.
There is a very good article by name "Some inflation is good" by A V Rajwade
He has given very good instances like
--> Controlled inflation is good for long term growth, about which I was proposing many times as "if you are expecting growth then be ready for some kind of inflation"
--> Hyperinflation in Germany in 1920s, Stagflation in 1970s, Japan's Zero growth over two decades even after excessive liquidity.
--> One more imported phrase is "Certain minimum unemployment is necessary if inflation is to remain low & stable that is, policy should be aimed at keeping few millions unemployed for the benefit of rest of us"
and many more... I thought its very interesting article, so please go through the link provided above.
One more article by name "Politics of inflation" by Sanjay Baru...
Author has connected "Inflation & Manmohan Singh" very beautifully in many instances like
--> 1972-74 situation after Pakistan war & first oil shock
--> 1992 situation after devaluation & commodity price hike
--> 2006-07 situation due oil price hike
--> 2009-10 situation due to food articles price hike
in all these cases Manmohan Singh was & is one of the major positions (chief economic adviser, Finance minister & Prime minister) who can decide on monetary & fiscal polices...
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