CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
05 February 2009You know frns India's annual inflation rate fallen to 5.07 PCT.
My question is " Is decrease in inflation good for economy???
Please give your reasons too.
kgbaliga
(Mentor & Social Activist )
(43 Points)
Replied 14 February 2009
There is a real threat of an impending deflation of economy looming , now in a lowerering of inflation in this exceptional time of a global economic meltdown. Lower inflation rate per se i though is a sign of economic stability., in present context this is more a fall out of the economic crisis - ramification of which no one is able to predict. Only a bold and sustained fiscal management by the governments can help reduce the pain and overcome the crisis situation, but there are no short-cuts no miracles we should expect. Path to recovery is long and ardous, and there will be pain felt by every strata of society in varying degrees. Only patience is required , as they say time is the biggest healer.
Sumit Jain
(CA)
(4760 Points)
Replied 03 March 2009
| Originally posted by :kgbaliga | ||
| " | There is a real threat of an impending deflation of economy looming , now in a lowerering of inflation in this exceptional time of a global economic meltdown. Lower inflation rate per se i though is a sign of economic stability., in present context this is more a fall out of the economic crisis - ramification of which no one is able to predict. Only a bold and sustained fiscal management by the governments can help reduce the pain and overcome the crisis situation, but there are no short-cuts no miracles we should expect. Path to recovery is long and ardous, and there will be pain felt by every strata of society in varying degrees. Only patience is required , as they say time is the biggest healer. | " |
agree with him
CAclubindia
