The result is an inflationary spiral which creates tremendous costs for the public. Therefore, economists have argued – and a number of Nobel prizes have been given for the ideas contained in the previous paragraphs – that the best way for the central bank to generate growth in the long run is for it to bring down inflation.
6 Either way, the question of the economic future of India is of major importance not only to the 18 percent of the world’s population that lives in India, but also to the other 82 percent of the global population.