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<blockquote data-quote="Mal Aiyya" data-source="post: 3710566" data-attributes="member: 81650"><p>for example the high inflationary rates during the past, if we recall it was triggered by the release of the Rs.2000/- note, since it was heavily publicised people thought it will increase money supply and cause inflation, so before hand itself suppliers and customers increased prices, and people bought more stuff thinking that those will rise in prices later...all that INCREASED the inflation to a VERY big level...but what actually the Central bank did was they released the Rs2000/- note but TOOK BACK Rs.1000/- notes to equivalen 3/4 of the whole Rs.2000/- notes issued...well if our people had kept quiet there would have been NO such high inflation but it would have been like at 3-6%, which is usually prefereed by many economies</p></blockquote><p></p>
[QUOTE="Mal Aiyya, post: 3710566, member: 81650"] for example the high inflationary rates during the past, if we recall it was triggered by the release of the Rs.2000/- note, since it was heavily publicised people thought it will increase money supply and cause inflation, so before hand itself suppliers and customers increased prices, and people bought more stuff thinking that those will rise in prices later...all that INCREASED the inflation to a VERY big level...but what actually the Central bank did was they released the Rs2000/- note but TOOK BACK Rs.1000/- notes to equivalen 3/4 of the whole Rs.2000/- notes issued...well if our people had kept quiet there would have been NO such high inflation but it would have been like at 3-6%, which is usually prefereed by many economies [/QUOTE]
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