Monday, November 16, 2015

What is inflation?

While a lot of technical literature is available if one wants to learn more about inflation, I present some alternative perspectives to understand what inflation can mean.

Here goes:

  • Inflation is when you feel good about the economy, but end up not saving much at the end of every month.
  • Inflation is when you really want to praise the Central Bank governor for being so technically astute, but lack the feel-good to do so.
  • Inflation is that which bites you hard when the Minister claims it would not.
    RBI Raghuram Rajan Sandeep Manudhane SM sir PT education PT's IAS Academy
    Inflation is a monster we keep trying to tame!
  • Inflation is high when you passionately try to explain a class of students why it cannot be otherwise, given the macro economic fundamentals.
  • Inflation is what remains hidden, and ready to explode, after years of Federal Reserve's Q.E. effort.
  • Inflation is the fantastic man-made monster that arises from another fantastic man-made monster 'money', that arose from yet another fantastic man-made monster 'progress'.
  • Inflation is what the aboriginal tribes of Africa know nothing about, and yet get on with their lives wonderfully well.
  • Inflation is what happens to you while you are busy planning other things.
  • Inflation is what the banker tells you ate up all your F.D. returns while he makes a killing lending.
  • Inflation is the best excuse ever for not allowing a lot of people to get rich with time!
  • Oh, and surely, inflation is the general rise in prices, as measured by indices like the CPI and WPI, when too much money starts chasing too few goods.
Hope you enjoyed! Suggestions welcome.

1 comment:

Topgun said...

Nice article sir. I have started reading your articles/watching videos lately just to increase my knowledge about different aspects, I think there is a huge takeaway here. Learning is humungous.
Regarding this topic, if you could have also mentioned about how it differs from deflation/disinflation, that would be great.