IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v6y2022i9p01-04.html
   My bibliography  Save this article

Rising Inflation: Lessons from India’s response to rising inflation in recent history

Author

Listed:
  • Sameer Kumar

    (Department Asia-Europe Institute, University of Malaya, Malaysia)

Abstract

This paper examined inflation, its causes, and, as a case study, the reason for the year 2008 inflation rate increase and India’s response to combating the same. From the year 2000 until the end of 2007, India’s inflation rate remained relatively stable between 5 and 7 percent. Although the Reserve Bank of India had set a target inflation rate of 4.11 percent for 2008, the inflation rate skyrocketed, shocking everyone. Recent inflation rate growth has kept India’s central bank, RBI, on edge. This article examines the dynamics of inflation, the reason for its sudden rise, and India’s response to containing inflation. Speculation in the markets, a lack of food products, a rise in global prices, and an overabundance of money are discussed as some of the major causes of India’s rising inflation rate. We also discuss the inflation of 2022, which is caused by a variety of factors, such as supply chain disruptions caused by the Covid-19 pandemic and the Russia-Ukraine war.

Suggested Citation

  • Sameer Kumar, 2022. "Rising Inflation: Lessons from India’s response to rising inflation in recent history," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(9), pages 01-04, September.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:9:p:01-04
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-6-issue-9/01-04.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/rising-inflation-lessons-from-indias-response-to-rising-inflation-in-recent-history/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kiguel, Miguel A, 1989. "Budget Deficits, Stability, and the Monetary Dynamics of Hyperinflation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 21(2), pages 148-157, May.
    2. Scott Roger, 1998. "Core inflation: concepts, uses and measurement," Reserve Bank of New Zealand Discussion Paper Series G98/9, Reserve Bank of New Zealand.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrade, Isabel & O'Brien, Raymond, 2007. "A measure of core inflation in the UK," Discussion Paper Series In Economics And Econometrics 0708, Economics Division, School of Social Sciences, University of Southampton.
    2. Josh Ryan-Collins, 2015. "Is Monetary Financing Inflationary? A Case Study of the Canadian Economy, 1935-75," Economics Working Paper Archive wp_848, Levy Economics Institute.
    3. Zink, Helmut, 1993. "Stability problems in hyperinflation models," Discussion Papers, Series I 268, University of Konstanz, Department of Economics.
    4. International Monetary Fund, 2007. "Republic of Madagascar: Selected Issues," IMF Staff Country Reports 2007/239, International Monetary Fund.
    5. José Manuel Madeira Belbute, 2015. "Assessing core inflation indicators: evidence for Angola," CEFAGE-UE Working Papers 2015_01, University of Evora, CEFAGE-UE (Portugal).
    6. Prakash Kumar Shrestha, 2006. "Some Measures of Core Inflation and Their Evaluations in Nepal," NRB Economic Review, Nepal Rastra Bank, Research Department, vol. 18, pages 37-69, April.
    7. Sanjay Kalra & Bui Thi Trang Dzung, 2016. "Robust Measures of Core Inflation for Vietnam," IMF Working Papers 2016/019, International Monetary Fund.
    8. Manuel de Mier & Fernando Delbianco, 2023. "Cu\'anto es demasiada inflaci\'on? Una clasificaci\'on de reg\'imenes inflacionarios," Papers 2401.02428, arXiv.org.
    9. Easterly, William R & Mauro, Paolo & Schmidt-Hebbel, Klaus, 1995. "Money Demand and Seigniorage-Maximizing Inflation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(2), pages 583-603, May.
    10. Seamus Hogan & Marianne Johnson & Thérèse Laflèche, 2001. "Core Inflation," Technical Reports 89, Bank of Canada.
    11. Patrick Honohan, 1994. "The Fiscal Approach to Financial Intermediation Policy," Papers WP049, Economic and Social Research Institute (ESRI).
    12. Priyanka Sahu, 2021. "A Study on the Dynamic Behaviour of Headline Versus Core Inflation: Evidence from India," Global Business Review, International Management Institute, vol. 22(6), pages 1574-1593, December.
    13. Harashima, Taiji, 2007. "Hyperinflation, disinflation, deflation, etc.: A unified and micro-founded explanation for inflation," MPRA Paper 3836, University Library of Munich, Germany.
    14. Ruge-Murcia, Francisco J., 1999. "Government expenditure and the dynamics of high inflation," Journal of Development Economics, Elsevier, vol. 58(2), pages 333-358, April.
    15. Oguz Atuk & Mustafa Utku Ozmen, 2009. "Design and Evaluation of Core Inflation Measures for Turkey," Working Papers 0903, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    16. Pekarski, Sergey, 2011. "Budget deficits and inflation feedback," Structural Change and Economic Dynamics, Elsevier, vol. 22(1), pages 1-11, February.
    17. Kiguel, Miguel A. & Neumeyer, Pablo Andres, 1989. "Inflation and seigniorage in Argentina," Policy Research Working Paper Series 289, The World Bank.
    18. Dowd, Kevin & Cotter, John & Loh, Lixia, 2011. "U.S. Core Inflation: A Wavelet Analysis," Macroeconomic Dynamics, Cambridge University Press, vol. 15(4), pages 513-536, September.
    19. Ashima Goyal & Arjun Singh, 2006. "Through a glass darkly: Deciphering the impact of oil price shocks," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2006-012, Indira Gandhi Institute of Development Research, Mumbai, India.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:6:y:2022:i:9:p:01-04. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.