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IMPACT OF CRR REDUCTION ON INFLATION IN LT

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(Querist)
03 March 2009 HELLO EVERYONE
MAY ANYONE PLEASE TELL ME IMPACT OF CRR REDUCTION ON INFLATION IN LONG TERM.
IN SHORT TERM IT MAY RISE INFLATION.
WEATHER IN LT ALSO INFLATION WILL INCREASE.
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CA Devanshi Gandhi (Ajani)

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CA Devanshi Gandhi (Ajani) (Expert)
03 March 2009 take case one when supply is equal to demand.....in this case if CRR been cut then the money will flow to demand side whihc will increase the demand....resulting in inflation....

but if supply is higher then demand....the infusion of the liquidity by cutting CRR will not have such a hge impact on the inflation
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