Tag: Inflation
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What is Stagflation?
Stagflation is a combination of the words “stagnant” and “inflation.” Stagflation is defined as an economic scenario with high inflation rates, low economic growth, and often characterized by high unemployment rates. Stagflation can pose a quandary for governments because most actions aimed at lowering inflation like raising of interest rates may cause hardship to existing…
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How to Invest in Equities when Interest Rates are rising?
Recently, the world has been grappling with effects of Inflation. In my previous post we had discussed in some detail, the problem of inflation and the reasons behind the recent increase in interest rates across a majority of economies round the world; including India. Some of our learnings from the post are as below: The…
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Why are Interest Rates Rising and what it means in the Indian Context?
We know that when there is abundance of something, its price falls. The reverse happens in case of scarcity, when the price tends to increase. This is simple #Economics101. Now, think of money like any other commodity. If you need some money now and your savings fall short, you can always borrow cash from a…
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How Do Central Banks Control Inflation?
Inflation is the gradual increase in the price of goods and services over a period of time. A high level of inflation is considered undesirable for the economy. An increase in price without any corresponding increase in income – reduces the purchasing power of Individuals and adversely affects their standard of living. As individuals have…