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Know How to Address Inflation Part 2
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This lesson helps one to recall and recollect the topics which were discussed in inflation so far. Continuing with the previous unit here one would study completely about fiscal policy. He also discusses administrative measures which would reduce inflation.

Ayussh Sanghi is teaching live on Unacademy Plus

Ayussh Sanghi
Passionate Educator - CSE / Other Govt Exams [Peep into my Unacademy Plus Courses & experience awesome learning.]

U
Unacademy user
On slide 5, high indirect taxes would lead to cost push inflation and not demand pull inflation.
I believe this is how it is to be analysed,Reducing tax on "imports" may lead to reduction of prices of products imported and hence curb the inflation.This works only if the inflation is of "cost push" type and not "demand pull".
sir..i hope reduction in service or customs, would reduce the prices and keep inflation in control.
sir please make course on gst
Ayussh Sanghi
2 years ago
Already made. Visit Contemporary Issues on my page. There are 4-5 lessons covering the entire thing in proper detail. Enjoy the lessons.
How does inflation is controlled by govt ,If the customs on exports is removed ,there will be decrease in the supply in domestic market and This is may lead to inflation?
With more exports, we gain more foreign currency. This could lead to more money supply which in turn induces more investments and more production. Correct me if i am wrong :) This is just my opinion.
  1. Inflation BY AYUSSH SANGHI Measures to Address Inflation Part 4.14 ress 1nflati01Par


  2. ABOUT ME >Passionate about Teaching >Taught at most reputed Civil Services Institutes >CA, Lawyer Follow me on: https://unacademy.in/user/ AyusshSanghi


  3. How to Address Inflation? . Usually three ways are adopted to contain inflation: Usually three watcontain inflation: Monetary Policy . Fiscal Policy Administrative Measures


  4. Fiscal Policy Fluctuating Non-Plan Expenditure: . High non- plan expenditure by the government increases the amount of monev in the hands of each individual in the economy Thus, there is high purchasing power and high demand for the products. The problem with non-plan expenditure is that it does not lead to a corresponding rise in the supply of commodities and thus resulting in demand-pull inflation. Reducing this expenditure may counteract the rising inflation problem


  5. Fiscal Policy Fluctuating Non-Plan Expenditure: .Moderating indirect taxes like: e service taxX custom excise. High taxes lead to a rise in the price of commodities and thus leads to inflation. Reducing the taxes may help in curbing inflation.


  6. Administrative Measures . In a country like India use of administrative measures have grown more effective from time to time in bringing about balance between demand and supply and thereby controlling inflation to an extent.


  7. Administrative Measures . Inflation control policy requires demand and supply management that can be brought about by improving distribution and availability rather than production. Hence these measures address distribution and availability which are scarce and have resulted in inflation,