Inflation--Price rise,its causes,its effect,and solution

1. BY
AZIZ Z. COMPANIWALA
MIHIR N. CHAVDA
INFLATION SCENARIO
ANY SOLUTIONS!!!!!!!!
G.H.PATEL COLLEGE OF ENGINEERING &TECHNOLOGY

2. CONTENTS
What is inflation?
Causes of inflation
Effect of Inflation
Solution

3. Definition
 An increase in the general level of prices in an economy that is
sustained over a period of time is called inflation.
 Inflation is defined as a sustained increase in the price level or a
fall in the value of money.

4. Causes
War
Strike
Black Money/Green Money
Corruption
Demand and Supply
Growth in Population
Increase in Import
Hoarding

5. Effects
Positive
 Inflation  Currency Devaluation  Better
Margins for Exporters
 Purchasing Power is Controlled(unnecessary
purchasing is reduced)

6. Effects
Negative
 MoneyValue Decreases
 Investment and Saving Decreases
 Shortage of Goods
 Rise In Poverty
 Aviation Sector(Rate of AviationTickets)
 Health Sector(Hospital Prices)

7. Solutions
For Governments
 For Fiscal Policy(Tax Based)
 For Monetary Policy(Interest Based)
 IncreaseAgricultural Growth

8. Solutions
 EconomicTheories
1)Paul Krugman(Cannes theory)
2)Dr. Raghuram Rajan’sTheory
Paul Krugman Dr. Raghuram Rajan

9. Solutions
What Common Man Can do??
 Invest in necessary Luxuries
 Conservation of Energy
 Work On Money Savings
 Use Indian Brand

10. •ForeignBrand
•IndianBrand
Product
•Colgate,Pepsodent
•Babool,Vicco,Dabar
Tooth Paste
•Lux,Lifebouy,Dove
•Cinthol,santoor,Medimix
Soap
•Mcdonald,Subway,
•LocalRestaurant
Food
•Honda,Yamaha
•Hero,RoyalEnfield
Bikes
•Rado,Citizen
•Titan,Sonata,Fasttract
Watch
Solutions

11. Conclusion

12. Reference
http://www.statista.com/statistics/271322/inflation-rate-in-india/
http://www.worldjute.com/inflation.html
http://www.inflation.eu/inflation-rates/india/historic-inflation/cpi-inflation-
india-2011.aspx
Wikipedia
www.cpolicy.rbi.org.in
www.wss.rbi.org.in
THANKYOU