INFLATION
Important points :-
1. THE REVENUE RAISED THROUGH THE PRINTING OF MONEY IS CALLED SEIGNIORAGE.
2. PRINTING MONEY TO RAISE REVENUE IS THEREFORE LIKE IMPOSING A TAX WHICH IS CALLED- INFLATION TAX
3. THE TRADEOFF BETWEEN INFLATION & UNEMPLOYMENT IS CALLED THE PHILLIPS CURVE.
4. “TOO MUCH MONEY CHASING AFTER TOO FEW GOODS” IS RELATED TO DEMAND PULL INFLATION.
5. HEADLINE INFLATION CONSIDERS THE PRICES OF ALL THE GOODS & SERVICES.
6. CORE INFLATION CONSIDERS THE PRICES OF ALL GOODS AND SERVICES EXCEPT COMMODITY PRICES (LIKE PRICES OF VEGETABLES, FRUITS, FUEL ITEMS.)
7. WPI- PUBLISHED BY OFFICE OF ECONOMIC ADVISER (MINISTRY OF COMMERCE & INDUSTRY).
8. CPI- PUBLISHED BY CENTRAL STATISTICS OFFICE(MINISTRY OF STATISTICS & PROGRAMME
IMPLEMENTATION)
9. THE TERM CORE INFLATION WAS COINED BY EcKstein (1981).
10. MANUFACTURED PRODUCTS HAS MAXIMUM WEIGHT IN WHOLE SALE PRICE INDEX IN INDIA.
11. THE RATE OF INFLATION IN INDIA IS MEASURED IN RESPECT OF WHOLE SALE PRICE INDEX. WPI WAS 1st PUBLISHED IN 1942 FOR 23 COMMODITIES.
12. UNDER INFLATION DEBTORS ARE GAINERS & CREDITORS ARE LOOSERS.
13. UNDER INFLATION.l “THOSE WHO INVEST THEIR CAPITAL IN GOVT SECURITIES, DEBENTURES, BONDS
ETC. ARE LOOSERS”. “ THOSE WHO INVEST THEIR CAPITAL IN SHARES OF JOINT STOCK COMPANIES ARE GAINERS.
14. THE PERCENTAGE OF DEMAND & TIME LIABILITIES THAT BANKS HAVE TO KEEP WITH RBI IS CALLED CASH RESERVE RATIO.
15. THE BUYING SELLING OF TREASURY BILLS, GOVT & OTHER SECURITIES BY RBI IS CALLED- OPEN MARKET OPERATIONS.
16. PURCHASING POWER OF MONEY FALLS WHEN-PRICE LEVEL RISES.
17. INCREASING UNEMPLOYMENT & INFLATION IS A SITUATION OF STAGFLATION.
18. WHEN INFLATION IS IN THE DOUBLE OR TRIPLE DIGITS WE CALL THAT
GALLOPING INFLATON.
19. COST PULL INFLATION IS A TYPE OF INFLATION DEVELOPS WHEN SUPPLY COST INCRESES.
20. DEMAND PULL INFLATION IS CAUSED BY INCREASED MONEY EXPENDITURE.
1. THE REVENUE RAISED THROUGH THE PRINTING OF MONEY IS CALLED SEIGNIORAGE.
2. PRINTING MONEY TO RAISE REVENUE IS THEREFORE LIKE IMPOSING A TAX WHICH IS CALLED- INFLATION TAX
3. THE TRADEOFF BETWEEN INFLATION & UNEMPLOYMENT IS CALLED THE PHILLIPS CURVE.
4. “TOO MUCH MONEY CHASING AFTER TOO FEW GOODS” IS RELATED TO DEMAND PULL INFLATION.
5. HEADLINE INFLATION CONSIDERS THE PRICES OF ALL THE GOODS & SERVICES.
6. CORE INFLATION CONSIDERS THE PRICES OF ALL GOODS AND SERVICES EXCEPT COMMODITY PRICES (LIKE PRICES OF VEGETABLES, FRUITS, FUEL ITEMS.)
7. WPI- PUBLISHED BY OFFICE OF ECONOMIC ADVISER (MINISTRY OF COMMERCE & INDUSTRY).
8. CPI- PUBLISHED BY CENTRAL STATISTICS OFFICE(MINISTRY OF STATISTICS & PROGRAMME
IMPLEMENTATION)
9. THE TERM CORE INFLATION WAS COINED BY EcKstein (1981).
10. MANUFACTURED PRODUCTS HAS MAXIMUM WEIGHT IN WHOLE SALE PRICE INDEX IN INDIA.
11. THE RATE OF INFLATION IN INDIA IS MEASURED IN RESPECT OF WHOLE SALE PRICE INDEX. WPI WAS 1st PUBLISHED IN 1942 FOR 23 COMMODITIES.
12. UNDER INFLATION DEBTORS ARE GAINERS & CREDITORS ARE LOOSERS.
13. UNDER INFLATION.l “THOSE WHO INVEST THEIR CAPITAL IN GOVT SECURITIES, DEBENTURES, BONDS
ETC. ARE LOOSERS”. “ THOSE WHO INVEST THEIR CAPITAL IN SHARES OF JOINT STOCK COMPANIES ARE GAINERS.
14. THE PERCENTAGE OF DEMAND & TIME LIABILITIES THAT BANKS HAVE TO KEEP WITH RBI IS CALLED CASH RESERVE RATIO.
15. THE BUYING SELLING OF TREASURY BILLS, GOVT & OTHER SECURITIES BY RBI IS CALLED- OPEN MARKET OPERATIONS.
16. PURCHASING POWER OF MONEY FALLS WHEN-PRICE LEVEL RISES.
17. INCREASING UNEMPLOYMENT & INFLATION IS A SITUATION OF STAGFLATION.
18. WHEN INFLATION IS IN THE DOUBLE OR TRIPLE DIGITS WE CALL THAT
GALLOPING INFLATON.
19. COST PULL INFLATION IS A TYPE OF INFLATION DEVELOPS WHEN SUPPLY COST INCRESES.
20. DEMAND PULL INFLATION IS CAUSED BY INCREASED MONEY EXPENDITURE.
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