Themthingchon Y.R.In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. The term "inflation" once referred to increases in the money supply (monetary inflation); however, economic debates about the relationship between money supply and price levels have led to its primary use today in describing price inflation. Inflation can also be described as a decline in the real value of money—a loss of purchasing power.
In 2008, a global economic crisis was seen to be emerging as shown and suggested by several important indicators of economic downturn worldwide. These included high oil prices, which led to both high food prices (due to a dependence of food production on petroleum, as well as using food crop products [ethanol, bio diesel] as an alternative to petroleum) and global inflation. There was also a substantial credit crisis leading to the bankruptcy of large and well established investment as well as commercial banks in various nations around the world; increased unemployment; and the possibility of a global recession, coming about on a long term basis.
Back home, while there's a certain amount of panic and drop in investments, Indian economists and pundits seem confident that the impact of this crisis on India will not be as severe.
Waves of shock and owe,anxiety and fear - a tightrope walk for the corporate houses,agony for the common people and pink slips for the employees. This is the fruit of "Globalisation".
ReplyDeleteM. Mochahari