The costs of inflation High inflation has been with us in India for the last four decades. Most recently, we have experienced an average of more than 9 percent inflation between 2006 and 2013. What are the costs of having high inflation? Clearly, everyone understands the costs of hyper-inflation, when prices are rising every minute.
The rates for treasury discount bills (T-Bills) declined to negative territory in September and remained there for most of the time since then (Chart 3). The payment of negative interest on securities sounds counter-intuitive and thus may prompt concern that Japan’s financial markets are suffering a serious malfunction.