hw inflation effect on indian economy


This query is : Resolved 

(Querist)
29 July 2008 cn any one else let me know the raw points in hw inflation effect on indian economy.

KAAPIL (Expert)
09 September 2008 INFLATION : TOO MUCH MONEY CHASING TOO FEW GOODS.
IF LKIQUIDITY REMAINS IN THE MARKET IT MAY INCREASE THE PURCHASING POWER.
PRODUCTION = SUPPLY
SUPPLY IF LESS THAN DEMAND WILL CREATE SCARCITY.
THIS LEADS TO HOARDING.
IT LEADS TO INFLATION.
THIS IS VERY BRIEF.


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