Data on International trade & Inflation for Dec’16 and IIP for the month of Nov were released by government agencies earlier this week. Coming in the backdrop of demonetisation and its expected adverse impact, the figures were much awaited. To the relief of the government, the economy appears to have performed well on all the three parameters. … Continue reading Trade, IIP and Inflation – Nov/Dec Performance..
Zimbabwe witnessed unprecedented increase in prices during 2007-09 which could be reined-in only after abandonment of its currency. Like in all earlier episodes, this bout of hyperinflation, was also caused by sharp rise in money supply due to reckless printing of money to finance government deficit. Currency notes issued during this time ranged from Z$ 1 … Continue reading Understanding Hyperinflation – Economy of Zimbabwe..
WPI based for the month of April was released last week with inflation showing an increase for the first time after 17 months. The reversal may cause anxiety if this turns out to be the beginning of another upward movement in the inflation cycle. Inflation is a word that every policymaker, and of course, the … Continue reading Explaining Inflation..