The rising inflation in India and its possible solution?
Answer:
Often times, the most inflationary thing that a country does is continue to print money. It has happened so many times in so many places that it isn't even funny. Germany was one of the worst culprits, as it had a period in which paper money became so common that workers had to be paid four times a day so that they could spend their earnings before inflation eroded them. So, one of the first things India should do is stop printing money. The ultimate way to fight inflation is to keep the money supply in check and to focus on growing the economy. Ultimately, individuals are more worried about how much their money can buy rather than how much of the money they have. I would rather have $1 a week with bread prices of .01 than have $1,000,000 with bread prices of $500,000. While it appears I am richer with $1,000,000, I am actually poorer, because I can't buy as much. Thus, increasing production of useful goods and services is what India should focus on.
Adjust Money supply
Adjust imports/Exports
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