Tuesday, March 29, 2011

Unintended boosters


·        Economic survey Suggests that financial inclusion has lead to more money in economy and hence increasing inflation
·         However there are also some supply side factors
·         Percapita income has increased by 7% . hence the better off people are not impacted by inflation. It is the bottom quintile which is facing brunt of inflation(they 67% of household income on food)

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