What should RBI do to control inflation in the country?
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Mains Answer Writing for MPPSC
Preparing for the Mains Examination of the Madhya Pradesh Public Service Commission (MPPSC) requires a strategic approach, particularly in mastering the art of answer writing. In this article, we will explore various sub-topics essential for effective answer writing, providing you ...
Introduction:
Inflation is a rate where the price of services and goods rise. High inflation impact negatively on the economy. It can reduce the value of currency, and can lead to less economic growth.
Causes:
The agricultural fluctuations due to unpredictable weather, supply chain disruptions, etc,. also increased government spending, rising incomes, also leads to inflationary pressure.
Impact:
It impacts in several ways as it reduces income of people especially for the poor people and people with fixed incomes. It discourages investments and savings leading to lower the economic growth.
RBI measure :
RBI plays a vital role in managing inflation through monetary policy. It uses repo rates, reverse repo rate, money supply, etc., RBI can absorb extra liquidity from the market so that it can reduce the inflation.
Conclusion:
Inflation is a part of growing economy. It can be a problem where it is too high. For India , it is crucial for understanding and managing the inflation. Whereas, RBI plays key role in controlling the inflation by enhancing the productivity, improves supply chains, etc., By these measures, India can hope to get stable and low inflation and conceive the economic growth.
Introduction:
Inflation is a rate where the price of services and goods rise. High inflation impact negatively on the economy. It can reduce the value of currency, and can lead to less economic growth.
Causes:
The agricultural fluctuations due to unpredictable weather, supply chain disruptions, etc,. also increased government spending, rising incomes, also leads to inflationary pressure.
Impact:
It impacts in several ways as it reduces income of people especially for the poor people and people with fixed incomes. It discourages investments and savings leading to lower the economic growth.
RBI measure :
RBI plays a vital role in managing inflation through monetary policy. It uses repo rates, reverse repo rate, money supply, etc., RBI can absorb extra liquidity from the market so that it can reduce the inflation.
Conclusion:
Inflation is a part of growing economy. It can be a problem where it is too high. For India , it is crucial for understanding and managing the inflation. Whereas, RBI plays key role in controlling the inflation by enhancing the productivity, improves supply chains, etc., By these measures, India can hope to get stable and low inflation and conceive the economic growth.
To control inflation, the Reserve Bank of India (RBI) can implement several key measures:
To control inflation, the Reserve Bank of India (RBI) can implement several key measures:
To control inflation, the Reserve Bank of India (RBI) can implement several key measures: