The Impact of Inflation on India and Other Developing Nations

At a recent event, Eswar Prasad discussed the current economic state in India, nothing that India began seeing inflation from the global economic recovery earlier than other countries.

Prasad argues that the issues India has seen due to inflation affect many developing nations, as food prices have led much of the inflation, causing social instability as the poor are impacted more by price increases of necessary commodities. He raises the question of how countries should deal with this, as governments are forced to react to a supply-side factor with monetary policies.