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Title: INFLATION IN INDIA: A STUDY OF PRE AND POST INFLATION TARGETING PERIOD
Authors: Chethana. B; Dr. Mahesha. M
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1Chethana. B; 2Dr. Mahesha. M 1. Research Scholar, Dept of Studies in Economics and Cooperation, University of Mysore, Manasagangothri, Mysuru, Karnataka - 570006. 2. Associate Professor, Dept of Studies in Economics and Cooperation, University of Mysore, Manasagangothri, Mysuru, Karnataka - 570006.
MLA 8 B, Chethana., and Dr. Mahesha. M. "INFLATION IN INDIA: A STUDY OF PRE AND POST INFLATION TARGETING PERIOD." Int. j. of Social Science and Economic Research, vol. 3, no. 12, Dec. 2018, pp. 7041-7056, ijsser.org/more2018.php?id=497. Accessed Dec. 2018. APA B, C., & M, D. (2018, December). INFLATION IN INDIA: A STUDY OF PRE AND POST INFLATION TARGETING PERIOD. Int. j. of Social Science and Economic Research, 3(12), 7041-7056. Retrieved from ijsser.org/more2018.php?id=497 Chicago B, Chethana., and Dr. Mahesha. M. "INFLATION IN INDIA: A STUDY OF PRE AND POST INFLATION TARGETING PERIOD." Int. j. of Social Science and Economic Research3, no. 12 (December 2018), 7041-7056. Accessed December, 2018. ijsser.org/more2018.php?id=497.
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Abstract: Price instability in any country is like a human body with diseases. Countries which have higher price volatility are suffering from serious economic problems with social and political unrest. Consequently economies considered inflation as a plague and tries to control it by adopting various monetary and fiscal policy techniques. Among different monetary policy techniques the recent origin technique to this age old problem is 'Inflation Targeting'. The first country to adopt this strategy was New Zealand in 1989 followed by other countries. After observing many successful stories of different countries in stabilizing the inflation rate using Inflation Targeting(IT) strategy, Reserve Bank of India (RBI) also decided to adopt this strategy in 2015 based on Urjit Patel committee report. With this backdrop the present study intends to compare the level of inflation before and after the adoption of Inflation Targeting in India. Further, it also measures the trends and pattern of inflation in India. The study is based on secondary data collected from the RBI, Ministry of Statistics and Programme Implementation (MoSPI) and office of the Economic Adviser. Though the RBI considers only Consumer Price Index (CPI) under Inflation Targeting strategy, the study uses Wholesale Price Index (WPI) as well. The collected data for the research are analyzed with simple statistical techniques such as graphs, percentages and Dummy Variable Regression analysis. The results of this analysis have some policy implications.

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