Expert Explains: What’s the remedy against rising inflation?
The HinduPublished : May 30, 2022 06:00 IST Amid all the anxieties in a time of inflation came a moment of brief reassurance, or at least the pretence of it. “Evidence on consumption patterns”, it said, “suggests that inflation in India has a lesser impact on low-income strata than on high-income groups”. By plotting these expenditure patterns onto the rates of inflation applicable across commodities, the MoF arrived at a measure of the “effective” hardship experienced by various strata. How Reagan fought inflation A remedy for the unprecedented situation of “stagflation”—high inflation coexisting with economic stagnation—came after a fashion from the US monetary authority, the Federal Reserve or Fed. The integration of the vast labour forces from India and China into the global economy had a major role in the “great moderation”, as the years of growth and low inflation that ended in 2008 are known.