Inflation

THE REVENUE RAISED THROUGH THE PRINTING
OF MONEY IS CALLED- SEIGNIORAGE.
2. PRINTING MONEY TO RAISE REVENUE IS
THEREFORE LIKE IMPOSING A TAX WHICH IS
CALLED- INFLATION TAX
3. THE TRADEOFF BETWEEN INFLATION &
UNEMPLOYMENT IS CALLED THE PHILLIPS CURVE.
4. “TOO MUCH MONEY CHASING AFTER TOO FEW
GOODS” IS RELATED TO DEMAND PULL INFLATION.
5. HEADLINE INFLATION CONSIDERS THE PRICES
OF ALL THE GOODS & SERVICES.

CORE INFLATION CONSIDERS THE PRICES OF ALL
GOODS AND SERVICES EXCEPT COMMODITY PRICES
(LIKE PRICES OF VEGETABLES, FRUITS, FUEL ITEMS.)
7. WPI- PUBLISHED BY OFFICE OF ECONOMIC
ADVISER (MINISTRY OF COMMERCE & INDUSTRY).
8. CPI- PUBLISHED BY CENTRAL STATISTICS OFFICE
(MINISTRY OF STATISTICS & PROGRAMME
IMPLEMENTATION)
9. THE TERM CORE INFLATION WAS COINED BY
EcKstein (1981).
10. MANUFACTURED PRODUCTS HAS MAXIMUM
WEIGHT IN WHOLE SALE PRICE INDEX IN INDIA.

THE RATE OF INFLATION IN INDIA IS MEASURED
IN RESPECT OF WHOLE SALE PRICE INDEX. WPI WAS
1st PUBLISHED IN 1942 FOR 23 COMMODITIES.
12. UNDER INFLATION DEBTORS ARE GAINERS &
CREDITORS ARE LOOSERS.
13. UNDER INFLATION. “THOSE WHO INVEST THEIR
CAPITAL IN GOVT SECURITIES, DEBENTURES, BONDS
ETC. ARE LOOSERS”. “ THOSE WHO INVEST THEIR
CAPITAL IN SHARES OF JOINT STOCK COMPANIES
ARE GAINERS.
14. THE PERCENTAGE OF DEMAND & TIME
LIABILITIES THAT BANKS HAVE TO KEEP WITH RBI IS
CALLED CASH RESERVE RATIO.

THE BUYING SELLING OF TREASURY BILLS, GOVT
& OTHER SECURITIES BY RBI IS CALLED- OPEN
MARKET OPERATIONS.
16. PURCHASING POWER OF MONEY FALLS WHEN-
PRICE LEVEL RISES.
17. INCREASING UNEMPLOYMENT & INFLATION IS
A SITUATION OF STAGFLATION.
18. WHEN INFLATION IS IN THE DOUBLE OR TRIPLE
DIGITS WE CALL THAT GALLOPING INFLATON.
19. COST PULL INFLATION IS A TYPE OF INFLATION
DEVELOPS WHEN SUPPLY COST INCRESES.
20. DEMAND PULL INFLATION IS CAUSED BY
INCREASED MONEY EXPENDITURE.

Poverty In India.

HISTORY OF POVERTY IN INDIA-
One of the earliest estimations of poverty was done by
Dadabhai Naoroji in his book “POVERTY & UN-BRITISH
RULE IN INDIA”. He formulated a poverty line ranging
from Rs. 16 to Rs. 35 per capita per year based on
1867-68 prices.
IMPORTANT PONITS-
1. The Planning commission estimates levels of
poverty in the country on the basis of consumer
expenditure surveys conducted by the National Sample
Survey office (NSSO) of the ministry of statistics &
programme implementation.
2. ABSOLUTE POVERTY- It measures poverty based on
a pre determined level of per capita consumption
expenditure of the population. Households that lie
below this poverty lone are considered BPL.

RELATIVE POVERTY- estimates poverty in relation to
the economic status of other individuals of the society.
4. HOW TO MEASURE POVERTY-
➢ HEAD COUNT RATIO- HCR= A/N
A= NO. OF POOR
N= TOTAL POPULATION
ESTIMATES THE PROPORTION OF POPULATION BELOW
POVERTY LINE.
➢ POVERTY GAP INDEX
POVERTY GAP IS THE DIFERENCE BETWEEN THE POORs
EXPENDITURE OR INCOME & PRE DETERMINED POVERT
LINE.
POVERTY GAP INDEX IS THE RATIO OF POVERTY GAP YO
THE POVERTY LNE.
POVERTY GAP INDEX MEASURES THE INTENSITY OR
DEGREE OF POVERTY.
5. NITI AAYOG ESTIMATES POVERTY LINE USING NSSO
DATA (NSSO=NATIONAL SAMPLE SURVEY ORG.)
6. EVERY 5 YEARS NSSO CONDUCTS SURVEYS TO
COLLECT HOUSEHOLD CONSUMPTION EXPENDITURE.

MONTHLY PER CAPITA CONSUMPTION
EXPENDITURE (MSME) IS USED TO DETERMINE
POVERTY LINE.
8. MINISTRY OF RURAL DEVELOPMENT CONDUCTS BPL
CENSUS.
9. METHODS USED BY PLANNING COMMISSION NOW
(NITI AAYOG) TO ESTIMATE POVERTY IN INDIA=
✓ UNIFORM RECALL PERIOD (URP)- USED BY NITI
AAYOG TO ESTIMATE POVERTY LINE.
30 DAYS RECALL PERIOD FOR ALL ITEMS (FOOD & NON
FOOD ITEMS)
✓ MIXED RECALL PERIOS- REFERENCE PERIOD FOR 5
NON-FOOD ITEMS (EDUCATION INSTITUTIONS,
MEDICAL EXPENSES, CLOTHING, FOOTWARE &
DURABLE GOODS) CHANGED TO 1 YEAR.
30 DAYS RECALL PERIOD FOR THE REMAMING FOOD &
NON FOOD ITEMS.
✓ MODIFIED MIXED REFERENCE PERIOD (MMRP)
MMRP WAS USED BY THE RANGARAJAN COMMITTEE
FOR THE FIRST TIME IN INDIA TO ESTIMATE POVERTY.
REFERENCE PERIOD VARIED WITH DIFFERENT FOOD &
NON-FOOD ITEMS.

365 DAYS REFERNCE PERIOD- EDUCTION ,
CLOTHING, FOOTWARE, MEDICAL EXPENSES,
7 DAYS REFERNCE PERIOD- FRUITS, VEGETABLES,
SPICES, REFRESHMENT, EDIBLE OIL, EGG, FISH,
MEAT,PAN, TABACCO.
30 DAYS REFERENCE PERIOD- REMAINING FOOD
ITEMS, FUEL & LIGHT, TAXEX, RENT, NOM
INSTITUTIONAL MEDICAL CARE.
10.LORENZ CURVE-
DEVELOPED BY MAX LORENZ IN 1950.
GRAPHICALLY DEPICTS THE DISTRIBUTION OF
WEALTH OR INCOME IN THE SOCIETY OR ECONOMY.
SHOWS RELATIONSHIP BETWEEN “CUMULATIVE
PROPORTION OF INCOME & CUMULATIVE
PROPORTION OF POPULATION”
11.GINI COFFICIENT-
AN IMPORTANT MEASURE TO ESTIMATE
INEQUALITY.
RATION OF AREA BETWEEN LORENZ CURVE & THE
LINE OF PERFECT INCOME EQUALITY TO THE AREA
BELOW THE 45° LINE.
PERFECT EQUALITY- GINI COEFFICIENT IS ZERO.
PERFECT INEQULAITY- GINI COEFFICIENT IS ONE

12.COMMITTIEES ON POVERTY=
A. V M DANDEKAR & N RATH- MADE THE SYSTEMATIC
ASSESSMENT ON POVERTY IN 1971 BASED ON
NATIONAL SAMPLE SURVEY (NSS) DATA FROM 1960-61.
THEY ARGUED THAT POVERTY LINE MUST BE DERIVED
FROM THE EXPENDITURE THAT WAS ADEQUATE TO
PROVIDE 2250 CALORIES PER DAY IN BOTH RURAL &
URBAN AREAS.
B. ALAGH COMMITTEE (1979)-IN 1979 A TASK FORCE
CONSTITUTED BY THE PLANNING COMMISSION FOR
THE PURPOSE OF POVERTY ESTIMATION, CHARED BY
Y.K ALAGH, CONSTRUCTED A POVERTY LINE FOR RURAL
& URBAN AREAS ON THE BASIS OF NUTRITIONAL
REQUIREMENTS---
❖ RURAL= 2400 CALORIES PER DAY
❖ URBAN =2100 CALORIES PER DAY.
C. LAKDAWALA COMMITTEE (1993)- IN 1993 AN
EXPERT GROUP CHARIED BY D.T. LAKDAWALA MADE
FOLLOWING SUGGESTIONS-
CONSUMPTION EXPENDITURE SHOULD BE
CALCULATED BASED ON CALORIE CONSUMPTION.
STATE SPECIFIC POVERTY LINES SHOULD BE
CONSTRUCTED & THESE SHOULD BE UPDATED USING.
THE CONSUMER PRICE INDEX OF INDUSTRIAL
WORKERS (CPI-IW) IN URBAN AREAS & CONSUMER
PRICE INDEX OF AGRICULTURAL LABOUR (CPI-AL) IN
RURAL AREAS.
D. TENDULKAR COMMITTEE- IN 2005 ANOTHER
EXPERT GROUP TO REVIEW METHODOLOGY FOR
POVERTY ESTIMATION, CHARED BY SURESH
TENDULKAR, WAS CONSTITUTED BY THE PLANNING
COMMISSION. IT RECOMMENDED THE :-
❖ SHIFT AWAY FROM CALORIE CONSUMPTION BASED
ON POVERTY ESTIMATION.
❖ A UNIFORM POVERTY LINE BASKET ACROSS RURAL
& URBAN AREAS.
❖ THE COMMITTEE RECOMMENDED USING MIXED
REFERENCE PERIOD BASED ESTIMATES AS OPPOSED TO
UNIFORM REFERENCE PERIOD.
E. RANGARAJAN COMMITTEE- IN 2012 THE PLANNING
COMMISSION CONSTITUTED A NEW EXPERT PANEL ON
POVERTY ESTIMATION, CHARIED BY C RANGARAJAN
WITH THE FOLLOWING OBJECTIVES:-
TO PROVIDE AN ALTERNATE METHOD TO ESTIMATE
POVERTY LEVELS & EXAMINE WHETHER POVERTY LINES
SHOULD BE FIXED SOLELY IN TERMS OF A

CONSUMPTION BASKET OR IF OTHER CRITERIA ARE
ALSO RELEVANT.
TO REVIEW INTERNATIONAL POVERTY ESTIMATION
METHODS & INDICATE WHETHER NASED ON THESE, A
PARTICULAR METHOD FOR EMPIRAL POVERTY
ESTIMATION CAN BE DEVEVLOPED IN INDIA.
COMMITTEE SUBMIT ITS REPORT IN 2014.

True story....


It started over the summer of 2017, A boy met this girl at a party a friend of his mother was hosting. She was cute and she was very quite, she eventually started talking to him after he was playing around with the small children. He found out her name and age, turned out she was a few years younger than him. That night when he was in the car driving home, he thought about her through out that car ride and the rest of the night. A few days, her mother came over to ask him and his sister to come to their house and play with the girl and her little sister. This happened throughout the summer, eventually school started again and he was starting his junior year in high school. 

One morning he was working on a project and saw her class go by his classroom, that day was the day her class was going to have a tour of the school. Around February the boy was attending a birthday party and the girl arrived, throughout that night, both of them talked and played around. He found out that night that the girl had a crush on him when they met at that party over the summer. A few days later, she came over to his house and they talked and joked around before she left. That night, he couldn’t stop thinking about her. After that night, they started texting each other everyday and stayed up late at night. Eventually the girl confessed to him that she had feelings for him, he was shocked and extremely nervous. He didn’t know what to say, a few months back, the girl he had been crushing on for years got a boyfriend, her boyfriend was a friend of his. Eventually she asked him out and he said yes, not out of pity, but out of how much he cared about her. Not long after, her friends started bombarding him with questions, he didn’t mind because they were his girlfriend’s friends. They weren’t able to hang out much, the boy couldn’t drive and she didn’t live within walking distance. When they had the chance, the boy felt happy for the first time in a long time, she made him feel happy and he loved her with all of his heart. 

Though her friend thought he was cheesy, he meant every word he told her. She always called herself “Ugly”, “Stupid”, “Undeserving”, “Bratty” and more, but he always told her he never saw her that way. He told her it didn’t matter what she said she was or what she said about herself, he would always love her because she was always herself. As everyday passed, his love for her grew bigger and bigger and he really thought she was the one. He worked harder and took better care of himself because he never wanted her to worry about him. They shared their dreams, thoughts on the future, and more with each other. Her friend always asked him weird questions about the relationship, and he always answered honestly. He woke up every morning and told her “Good Morning”, he went to bed every night telling her “Good Night”. She was never off his mind, he couldn’t stop thinking about her. Months went by, he loved her more than ever but she started talking to him less. He didn’t mind, he didn’t want to suffocate her. She started ignoring a few things he said, but he looked passed it because her friends and her were always talking. 

Mother’s Day came around, he woke up and said “Good morning!” like he always had for the past few months, but got a text from her friend asking him about what he would do if him and his girlfriend were to break up. He answered honestly and she continued with questions on that subject. After a while, she told him “She might be breaking up with you soon, just a heads up”. He read that and his face dropped. She told him that his girlfriend found him to be too nice and cheesy for her and it was too much. He couldn’t understand, he didn’t know why. Her friend told him that his girlfriend wanted someone more mature. He was hit with waves of emotions, he went to church with nothing but that conversation in his mind. He didn’t know what to think, he got on his knees and prayed for it to be a joke. As he got home, he had a short conversation with his girlfriend

Boy- Hey, I heard there was something you wanted to talk to me about.

Girl- Yeah...

Boy- Well, whatever you have to say, go ahead, I’m listening.

Girl- Listen, I’m being completely blunt here, but I don’t think this relationship is working out.

Boy- I know, I heard from [Friend’s Name]

Girl- oh, I’ll talk to her later about this, but I’m talking to you rn

Boy- if that’s all you have you say, ok I understand

Girl- Are you sure? You’re ok with this?

Boy- Thank you. Thank you for that small time of relief. Don’t worry, I’ll be fine after a while.

Girl- Ok

The next day, he asked her if she was ok and told her that even though they couldn’t be a couple anymore, they could still be friends. He got a text later from her friend telling him that she didn’t love him or wanted anything to do with him anymore. He was heartbroken, he still really loved her and she didn’t want anything to do with him anymore. He spiraled into depression and he cried from time to time, every time someone mentioned her name, he fought back the tears. He told her he was fine but he lied, he didn’t want her to get back with him because of pity. He questioned if she ever really loved or cared about him, he thought if she cared about the relationship at all, she would’ve tried to work it out and talk to him, instead of just leaving. His was never really the same after the breakup, He smiled less, woke up feeling like he had no purpose, put on a fake smile everyday at school, laughing wasn’t really the same, and became very void of emotions. The breakup broke him mentally, he wasn’t really ever happy, sad, or angry. One day he asked a close friend “Which is worse, feeling sad or feeling nothing after a sad event?”. His friend told him that feeling nothing was worse, he thought the same. I wished every night she could’ve told me everything herself, maybe I wouldn’t be in so much pain. I still love her and still can’t stop thinking about her. My only sin was loving too much. If you ever read this, I’m so sorry.

Hello Everyone.
I'm Hilal Ahmed From Srinagar J&K India. I have done done my graduation In Commerce From Kashmir university & M.com From Guru Nanak Dev University, Amritsar.
I have written many books for commerce & mgt students. I feel learning is an art & whoever Understand this art, he or she can simply achieve success.
Life means sacrifices & for achieving success we must learn about sacrifice.
Someone Rightly said "Not how long, but how well you have lived is the main thing"