Inflation can be defined as disproportionate and relatively sharp or sudden increase in the quantity of money or credit, or both, as well as incomes and purchasing power relative to goods available for purchase. It always brings a rise in the price levels. There is erosion in the value of the internal medium of exchange and unit of account in the economy as money income is expanding relative to the output of work done by the productive agents, and too much money chases too few goods.
The chief measure of inflation is the inflation rate, i.e. the annualized percentage change in the general price index, normally the consumer price index, over a period of time. In order to measure overall inflation, the price changes of a large basket or collection of representative goods and services is measured. The weighted average prices are combined for calculating the overall price. To better relate the price changes over a period of time, indexes choose a ‘base year’ price and assign it a value of 100. Index prices in subsequent periods are expressed in relation to the base year price.
Inflation: Issues and Concerns has a vast coverage as it elaborates on all the important aspects relating to inflation. While the types of inflation like demand-pull and cost-push inflation have been illustrated, various states of inflation such as hyperinflation, deflation, disinflation and stagflation have been explained. Food inflation and non-food inflation have been taken up in separate chapters to give focused attention. The issues like inflation vs gold, money vs gold, rise in the price of gold, gold exchange rate, gold as investment, inflation-indexed securities, income bonds, inflation-linked derivatives have been discussed, which the readers will not only find interesting but also enriching. Inflation has not only been studied from Indian perspective but also as a global phenomenon. The current scenario of inflation in India has been studied in the light of various underlying reasons, explaining the likely effects of persisting high inflation. Some anti-inflationary measures have also been suggested.
The book is the result of analysis of the current situation, various reports, surveys and observations of experts. The text is supplemented by latest data on the subject in the form of tables and graphs. Figures and equations have been given as per requirement of the topic. Additional information has been given in Appendices in some chapters. Ideas have been presented in simple language and lucid manner for easy comprehension by the readers.
The book will be useful for a wide cross-section of people. It will help government officials, parliamentarians and economists in understanding different aspects of inflation and framing right policies to control it. Besides, it will be of interest to the students, teachers and researchers of Economics. Those preparing for various competitive examinations will also draw benefit from the book’s rich contents. To common readers who wish to know about inflation and various issues related to it, the book will provide for an intellectually stimulating and richly rewarding reading.
K.R. Gupta is a well-known economist. He has published over twenty books and contributed more than hundred papers in reputed journals, being published in India and abroad. The books written by him include Advanced Microeconomics (2 vols.); Advanced Macroeconomics (2 vols.); Economic Growth Models; Global Financial Crisis (3 vols.); International Economics (2 vols.); and Economics of Development and Planning (2 vols.). His latest edited books are Rural Development in India (4 vols.); and Indian Economic Policies and Data (co-edited). Dr. Gupta had been teaching postgraduate classes and guiding research for about two decades in the University of Jammu and Kurukshetra University. He has also worked as an Economist in private as well as in public sector. His last assignment was as Economic Advisor to the Modi Enterprises.
