|
Useful Links |
|
|
Article Details :: |
|
|
| Article Name : | | | ROLE OF INTERNAL FORCES IN INFLATIONARY PRESSURE IN INDIA | | Author Name : | | | A. D. Gade , R. A. Todkar | | Publisher : | | | Ashok Yakkaldevi | | Article Series No. : | | | GRT-4613 | | Article URL : | |  | Author Profile View PDF In browser | | Abstract : | | | Inflation is nothing but the persistent rise in the general price level of the country. Keynes explained that inflation arises when there is occurs an inflationary gap in the economy which comes to exist when aggregate demand exceeds aggregate supply at full employment level of output. But in recently all the economies of the world, underdeveloped as well as developed suffer from inflation and it is also not consistence with Keynes approach since majority of these underdeveloped countries are operating at underemployment level. The pressure and cause of inflation may differ from country to country. In fact in the process of economic growth generally inflation is always taking place and if the real growth rate of the economy is greater than the rate of inflation then the phenomena of inflation will not be adversely affects on standard of living of the citizens and vice versa. In Indian, there is high pressure of inflation since June 1955 and this pressure has further increased after 2001. There are various causes of inflation in India and these causes can be classified in to two major heads namely internal and external causes. In present research paper attempt is made to study the long run relationship between money supply, fiscal deficit, rate of investment, rate of import, public debt (as internal major causes of inflation) and inflationary pressure. With the help of correlation and regression technique this relationship has been examined. Study has covered twenty year’s period from 1991 to 2010 and arrived at conclusion that there is significant positive correlation exist between these variables and inflation. | | Keywords : | | |
|
|