why has the government in India failed to combat inflation even when a series of monetary measures are available in the textbook of macroeconomic ?
Nayra,
To combat inflation, monetary measures make the credit availability expensive and difficult which leads to a reduction in demand of commodities and services. The monetary measures do not consider supply side. The main reason of the inflation in India is less market supplies. If market supplies are not encouraged, we will face inflation.
To combat inflation, monetary measures make the credit availability expensive and difficult which leads to a reduction in demand of commodities and services. The monetary measures do not consider supply side. The main reason of the inflation in India is less market supplies. If market supplies are not encouraged, we will face inflation.