TITLE

INCREASING PRESSURE OF INFLATION ON INDIA'S MACROECONOMIC STABILITY: AN OVERVIEW

AUTHOR(S)
PALIWAL, JAYA
PUB. DATE
January 2013
SOURCE
International Journal of Research in Computer Application & Mana;Jan2013, Vol. 3 Issue 1, p140
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
In this phase of deep global recession, India is one of the economies around the world that are experiencing high pangs of inflation. Indian economy is facing the effects of severe inflation in the form of rising food and energy prices. An uncomfortably high level of inflation is one of the major pressures on India's macroeconomic climate following the global financial crisis. Between the period 2008-09 and 2011-12, inflation in India can be attributed to both microeconomic and macroeconomic factors. The microeconomic factors responsible for high inflation include adverse supply shocks coming from failure of monsoon and high volatility in global crude oil prices. The macroeconomic factors include the demand side mismanagement and failure in coordination between fiscal and monetary policies. This paper attempts to identify the factors including government's monetary and fiscal policies that are responsible for inflation in the country. This paper not only seeks to examine the relationship between inflation and output gap but also identifies possible policy challenges arising from high inflationary trends and their implication on Indian economy.
ACCESSION #
87676257

 

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