Inflation In India

Presentation On Inflation In India

Presented By:Shivam Agarwal(201410702110018)

Nilanshu Srivastava(201410702110020)

Introduction

• “Inflation means that your money won’t buy as much today as you could yesterday.”

• Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.

• In simple words, When a Rupees buys less than you would expect it to, it is called ₹as inflation.

Types

Causes Of InflationFactors affecting demand and supply results in Inflation.

• Increase in Money Supply

• Increase in Disposable Income

• Increase in Public Expenditure

• Increase in Consumer Spending

• Monetary Policy

• Black Money

• Shortage of Factors of Production

• Natural Calamities

• Artificial Scarcities

• Increase in Exports

• International Factors

Effects Of Inflation• Redistribution of Income and Wealth

• Production

• Government

• Collapse of the Monetary System

• Social

• Political

Measures To Control Inflation

Inflation is caused by the failure of aggregate supply to equal the increase in aggregate demand. Inflation can, therefore, be controlled by increasing the supplies of goods and services and reducing money incomes in order to control aggregate demand.

Monetary Measures

• Credit Control

• Issue of New Currency

Fiscal Measures

• Reduction in Unnecessary Expenditure

• Increase in Taxes

• Increase in Savings

Other Measures

• Increase Production

• Rational Wage Policy

• Price Control

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