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main causes for inflation in India
short term solutions for decreasing inflation in India
long term solutions for decreasing inflation in India

2007-03-04 15:22:55 · 5 answers · asked by kollipara a 1 in News & Events Media & Journalism

5 answers

ru 4m klce?!!

2007-03-08 01:45:48 · answer #1 · answered by *♥SwEeTy♥* 6 · 0 0

Inflation is caused by too much money chasing to few goods, causing the price of desired goods to go up. This will continue until goods are overproduced, at which time their prices will go down, and their manufacturers will be forced to retool, or decrease capacity.

One way to avoid inflation in India is to increase production and or/import of the most popular consumer items in India. This will undoubted cause more inflation in the area of India's already burgeoning infrastructure.

The way the U.S. treasury tames inflation is to increase the prime lending rate, which slows investment as capital loans become more expensive.

2007-03-08 15:21:52 · answer #2 · answered by DW2020 5 · 0 0

Because the economy is overheated with rapid growth thanks in large part to out-sourcing from the US? Just a guess. It will eventually correct itself when people can no longer afford the prices for goods and suppliers have to lower the prices.

2007-03-04 16:53:02 · answer #3 · answered by robot_hooker 4 · 0 0

inflation is about too much indian money being issued or held, by money traders ,banks and foreign money changers

the aim is to short out other peoples reserves of indian money ,this means that the money exchanges need to want to pay more for it ,so insist getting paid in local money

the simplest way to get back your money held by money changers is to do this ; to buy back indian money with gold or diamonds to get the indian money back into indian hands and not to give it back by bying big money iforeign mported goods

buy indian made goods of small local producers avoid big money imported goods and foreign firms
sell indian gold to get back the local money ,cash in indian diamonds for local money , dont buy foreign goods ,
avoid banking indian money
one [dollar] in the bank allows the bank 10 [dollars] credit ,this they lend out in big lumps of indiasn money as credit ,for people to buy imports ,thus floodding the bankers with yet more indian cash

turn foreign money into local money as soon as you get it dont think to hold foreign money it just lessons the worth of the buying power of your poor ,who have to use local money
if the value of indian money rises it lets the poor get more for the little money they have
letting the indian money market flood increases inflation and then they cant get fair purchase because costs have for basic goods has increaded in terms of how much indian money it costs to buy

try to avoid foreigers exporting your cash into bankers hands if they hold it it is good if thery take it home to cash it in it deflates the buying power of indian cash ,because bankers all ready hold enough indian cash thus only pay less and less for more indian cash ,its called supply and demand

but if the cost of bying indian money is rising they will hang on to it longer shortening its availability even more ,thus increasing its bying power for your poor ,thus they need less assistance and govt has less reson to tax you more
buy indian
use [love ] indian made and owned
use your own money to save your own people.

2007-03-04 16:35:15 · answer #4 · answered by Anonymous · 0 0

i would say overpopulation. it seems to be the most obvious answer.

2007-03-04 15:30:05 · answer #5 · answered by rickythewonderllama 2 · 0 0

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