Project report on impact of inflation exchange rate on stock price in india

The futures and options segment of NSE has made a global mark. It turns out that oil and gasoline prices are indeed very closely related. Optimal inflation rate[ edit ] It arises as the basic theme in deciding an adequate monetary policy.

The extra payment that U.

Causes of inflation in india

Fernald, John, and Bharat Trehan. They use the service to understand the threat of sovereign default in individual countries as well as the risks associated with currencies and banking sectors around the world. The strategic acquisition of photography, paintings, sculptures and other art can often provide inflation-beating returns, though certainly not always. Thus, inflation can encourage consumption which can in turn further stimulate the economy and create more jobs. The National Debt We all know that high national debt in the U. The supply of money grows rapidly while the supply of goods takes due time which causes increased inflation. High oil prices also can reduce demand for other goods because they reduce wealth, as well as induce uncertainty about the future Sill Therefore, to determine whether the relationship between oil prices and other variables has truly changed over time, one must go beyond casual observations and appeal to econometric analysis which allows researchers to control for other developments in the economy when studying the link between oil prices and key macroeconomic variables.

Price index is useful in gauging income and profit of sellers, cost index is useful in gauging expenditure and loss of buyers while the gold index helps measure wealth.

In addition, the in-depth forecasts contained within Country Reports allow users to see how individual countries will look in two to five years' time. The RBI picture clearly portrays for subsidising exports with a weak dollar-exchange rate.

A more macroeconomic way of looking at the negative effects of an increased money supply is that there will be more dollars chasing the same amount of goods in an economy, which will inevitably lead to increased demand and therefore higher prices.

demand pull inflation india

Factors[ edit ] There are several factors which help to determine the inflationary impact in the country and further help in making a comparative analysis of the policies for the same.

Krugman, Paul. The EIU indexed, and ranked, technology manufacturing conditions for five Chinese provinces and six countries for the next five years. Higher oil prices will push the import bill higher; however, it will be partly offset by higher oil exports and better remittances.

It also added currency futures in Euros, Pounds and Yen. A country has a capacity of producing just 5, units of a commodity but the actual demand in the country is 7, units.

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Project report on Relationship Of Inflation with Indian Stock Market