December 2020
Intermediate to advanced
857 pages
42h 3m
English
Content preview from Business Environment, 4th Edition by Pearson
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Inflation | 261
MEASURES OF INFLATION
Prices as Measures of Inflation
It is well recognized that inflation in India is a structural as well as a monetary
phenomenon. In the short term, the localized demand–supply imbalances in wage
goods, often due to seasonal variations in production—coupled with market
rigidities and regulatory failures have supported inflationary expectations that
have resulted in a more widespread impact, than the initial inflationary impulse,
on the consumers. In the medium to long term, the movement and outcome of
monetary aggregates, such as the money supply and reference interest rates of the
financial systems, have influenced ...
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