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Economics > Inflation > Flashcards

Inflation Flashcards

1
Q

Inflation

A

Inflation is persistent rise in the average price of goods of services

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2
Q

Deflation

A

Deflation is negative inflation: fall in price

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3
Q

Disinflation

A

Disinflation is reduction in rate of inflation

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4
Q

Stagflation

A

Stagflation is combination of inflation and rising unemployment due to recession

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5
Q

Reflation

A

Reflation is when inflation returns after a spell of deflation and recession thus showing growth is back

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6
Q

Open Inflation

A

Open inflation is when govt does not manage the inflation through subsidies, fiscal and monetary policies

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7
Q

Suppressed Inflation

A

Suppressed inflation: When inflation is managed by fiscal and monetary policies that is inflation is there but govt is keeping it under check
Also called hidden inflation

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8
Q

Creeping Inflation

A

Creeping inflation is Up-to 4%

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9
Q

Trotting Inflation

A

Trotting inflation is 5-10%

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10
Q

Galloping Inflation

A

Galloping is 10-20%

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11
Q

Runaway Inflation

A

Runaway is between Galloping and Hyper inflation

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12
Q

Hyperinflation

A

Hyperinflation requires a monthly inflation of 20-30 %

C

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13
Q

Cost Push Inflation

A

Cost Push inflation is also known as supply shock

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14
Q

Structural Inflation

A

Structural inflation is a type of persistent inflation due to certain deficiencies in economy

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15
Q

Structural inflation constraints

A
  • Leakage in PDS
  • inefficient distribution: Duplicity and ghost beneficiaries
  • Monopoly of APMC
  • Inability of agriculture sector to respond to increased demands for certain portion due to MSP
  • poor storage conditions
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16
Q

Fiscal Measures to control inflation

A

FM- reduction in indirect taxes

17
Q

Monetary measures to combat inflation

A

MM- Repo and reverse repo, CRR, SLR, MSF, OMO

18
Q

Administrative measures to combat inflation

A

AM- Essential commodities act, dishoarding, anti black marketing measures

19
Q

GDP Deflator

A

Ratio of nominal to real GDP

- Measures of inflation

20
Q

Producer Price Index (PPI)

A

Measures the change in prices received by a producer

21
Q

Order of price indexes

A

PPI > WPI > CPI

22
Q

Philips Curve

A

Inverse relationship b/w rate of inflation and rate of unemployment

23
Q

Repressed Inflation

A
  • Repressed inflation is when govt interrupts a price rise through measures like price control and rationing.
  • Distribution system is based on govt control
24
Q

Golder Committee

A

In 2014 introduced Producer Price Index

25
Q

Urjit Patel committee

A

UP- ideal inflation is 4% +-2%

26
Q

Chakravarty Committee

A

CVC- Ideal inflation is 4%

27
Q

Chandrasekhar Committee

A

Service Price Index

28
Q

Wholesale Price Index WPI

A

WPI
By- office of Economic Advisor (OEA), Department of Industrial Policy and Promotion (DIPP)

Base Year- 2011-12

Composition: Mfd products-64% (Basic metals > mfd food)
Primary Articles- 23% (food>non food> minerals)
Fuel & Power - 13% (Mineral oil > Electricity > Coal)

No SERVICE and UNORGANISED sector

29
Q

Index of eight Core Industries (ICI)

A

ICI
By- Office of Economic Advisor , Department of Industrial Policy and Promotion (DIPP)

Type: Eight core industries

Base Year: 2011-12

Composition: Petroleum refinery (28%)> Electricity (20%) > Steel (18%) > Coal (10%) > Crude Oil (9%) > Natural Gas (7%) > Cement (5%) > Fertilizer (3%)

30
Q

Index of Industrial Production (IIP)

A

IIP
By- Central Statistical Office (CSO), Ministry of Statistics and Programme Implementation (MoSPI)

Base Year- 2011-12

Composition: Mfg (78%) > Mining (14%) > Electricity (8%)

31
Q

Consumer Price Index (CPI)

A
  • Rural, Urban, Combined

By: Central Statistical Office (CSO), Ministry of Statistics and Programme Implementation (MoSPI)

  • Housing not covered in Rural
32
Q

CPI labour

A

By labour Bureau

Base year:
Agri Labour- 1986-87
Rural Labour- 1986-87
Industrial Worker- 2016

33
Q

Experiment Business service price Index (BSPI)

A

BSPI
By-OEA, DIPP

Monthly: Railway/Banking/Air/Portal
Quarterly: Insurance/Telecom
Yearly: Port

34
Q

Nikkei Purchasing Managers Index (PMI)

A

By: Nikkei Japan

35
Q

RESIDEX

A

RESIDEX
By- National Housing Board (NHB)

Base Year: 2017-18

Quarterly: 50 cities

36
Q

Housing Price Index

A

HPI
By- RBI

Base year- 2010-11

Quarterly: 10 cities

37
Q

GDP Deflator

A

GDP Deflator

By- CSO MoSPI

38
Q

Cost of Inflation Index

A

By- Central Board of Direct Taxes (CBDT), Ministry of Finance

Economics (31 decks)

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