Is decrease in inflation good for economy???

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CA CS CIMA Prakash Somani

Landmark Group

23517 Points Posted on 05 February 2009

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)

kgbaliga

Mentor & Social Activist

43 Points Posted on 14 February 2009

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.

Sumit Jain

4760 Points Posted on 03 March 2009

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