A ₹100 rupee note today has almost the same value as ₹1 coin in 1958. This is the effect of Inflation, our money constantly loses values with time. And over time, the effects our so extreme often people call it – Mehngayi dayan khaye jaat hai. But what really is the cause of Inflation? Why does it happen? And what would happen if there was zero inflation in the economy, would it impact our money or our economy badly?And lastly, what is the relation between inflation, unemployment and economic growth? I will answer all these questions in this video

0:00 Why Inflation Happens?
4:40 Present Day Inflation
5:43 What if Inflation was Zero?
7:54 What is Optimum Level of Inflation?
9:52 Inflation vs Economic Recession
12:04 Consequences of Inflation

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The Truth behind Inflation | Explained by Dhruv Rathee

Inflation is a topic that affects every individual, yet many of us fail to fully understand its implications. Inflation is the increase in the prices of goods and services over time, which results in the decrease in purchasing power. This phenomenon has far-reaching impacts on the economy and the lives of people, and it is crucial to understand its underlying causes and effects.

Dhruv Rathee, a prominent economist and social activist, has taken it upon himself to explain the truth behind inflation in a way that is accessible and easy to understand for the general public. In his informative videos and articles, Rathee breaks down the complex concepts surrounding inflation and offers insights into how it affects our daily lives.

One of the key factors contributing to inflation is the increase in the money supply. When the central bank prints more money or lowers interest rates, it leads to an increase in the amount of money circulating in the economy. As a result, people end up having more money to spend, and this surge in demand can cause prices to rise. Rathee emphasizes that this phenomenon is often overlooked by people and is a major driver of inflation.

Another factor that contributes to inflation is the cost-push effect. This occurs when the cost of production for goods and services increases, leading producers to pass these costs onto consumers in the form of higher prices. Rathee highlights that factors such as rising wages, energy costs, and raw material prices can all contribute to the cost-push effect and lead to inflation.

Rathee also delves into the concept of demand-pull inflation, which occurs when there is an increase in demand for goods and services, leading to a rise in prices. This can happen when there is an increase in consumer spending, investment, or government expenditures, creating upward pressure on prices. Rathee explains how this type of inflation can be driven by factors such as strong economic growth, low unemployment, and excess liquidity in the financial system.

In addition to explaining the causes of inflation, Rathee also sheds light on its effects on the economy and individuals. Inflation erodes the purchasing power of money, making it more difficult for people to afford the same level of goods and services. This can have a detrimental impact on individuals, especially those with fixed incomes or savings. Furthermore, inflation can also lead to uncertainty and instability in the economy, affecting investment decisions and overall economic growth.

Rathee’s comprehensive and clear explanations of inflation provide a valuable resource for individuals looking to understand this complex economic concept. By breaking down the underlying causes and effects of inflation, Rathee equips people with the knowledge to make informed decisions and better navigate the impact of inflation on their lives.

In conclusion, Dhruv Rathee’s insightful explanations of inflation provide a valuable resource for individuals seeking to understand this crucial economic concept. By shedding light on the causes and effects of inflation, Rathee empowers people to grasp the implications of inflation on their daily lives and the broader economy. As inflation continues to shape our economic landscape, Rathee’s efforts to educate and inform the public are more important than ever.