The Inflationary Process Some Theoretical Comments

The Inflationary Process: Some Theoretical Comments Prabbat Patnaik S K Rao Amal Sanyal It has been argued that the recent inflation in India cannot be explained only in terms of high levels of government spending in the face of inadequate levels of agricultural (especially foodgrains) production; that, in addition, prices have been pushed up owing to speculative stock-holding engendered by the upward revisions of the minimum support or procurement prices for foodgrains. Accelerating inflation has therefore gone hand in hand with addition to the level of stocks held for speculative reasons.