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Message: <blockquote data-quote="gnome" data-source="post: 26602064" data-attributes="member: 476712">These days people do not have enough money, even to buy basic food items, so it is very unlikely to cause an inflation. Government printing money to cover the budget gap not for other extravagant expenditures. Most of this money will be absorb by the banking system again. Not much effect.Imagine Government increased salaries of government servents by Rs.10,000 over night and printed money to pay that. In that case people will have more disposable income and will cause inflation.What we are experience is supply push inflation because of the devaluation of rupee against USD. If the manufacturer imports at least one component from abroad he has to increase the price of his final product.</blockquote>

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