Is decrease in inflation good for economy???

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You know frns India's annual inflation rate fallen to 5.07 PCT.

My question is " Is decrease in inflation good for economy???

Please give your reasons too.

Replies (2)

There is a  real threat  of an impending deflation of  economy  looming ,  now in a lowerering  of inflation  in this exceptional time of a global economic  meltdown. Lower inflation rate per se  i though is a sign of economic stability., in present context  this is more  a fall out of the economic crisis - ramification of which no one is able to predict. Only  a  bold  and sustained fiscal management by the governments  can help reduce the pain and overcome the crisis situation, but  there are no short-cuts no miracles we should expect. Path to recovery is long and ardous,  and there will be pain felt  by every strata of society in varying degrees. Only patience is required , as they say time is the biggest healer.

Originally posted by :kgbaliga
" There is a  real threat  of an impending deflation of  economy  looming ,  now in a lowerering  of inflation  in this exceptional time of a global economic  meltdown. Lower inflation rate per se  i though is a sign of economic stability., in present context  this is more  a fall out of the economic crisis - ramification of which no one is able to predict. Only  a  bold  and sustained fiscal management by the governments  can help reduce the pain and overcome the crisis situation, but  there are no short-cuts no miracles we should expect. Path to recovery is long and ardous,  and there will be pain felt  by every strata of society in varying degrees. Only patience is required , as they say time is the biggest healer. "

agree with him
 


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