Inflation pegs down currency value, re-allocates resources, reduces potential economic growth and leads to the attrition of gross domestic savings Sustained increases in price are often due to rising demand for existing production, when the former outpaces the productive capacity of an economy. With high money circulation, one has more money to spend and invest, but production is unable to expand in response. Prices must now rise to bring equilibrium to the market, by incentivizing producers ... Rediff.com, 3 weeks ago
With inflation figures expected to be well within RBI’s target, there may be room for further rate cut, say Anisha Sircar and Nupur Pavan Bang. The Wholesale Price Index for May 2015 stood at minus 2.36 per cent, continuing its downward trend since the last seven months. The Consumer Price Index stood at 5.01 per cent, well within the range of 2-6 per cent targeted by the Reserve Bank of India. With the release of these figures on June 15, 2015, the demand for a further rate cut have ...Rediff.com, 1 month ago
on your WebpageAdd Widget >Get your members hooked!