What is Painless disinflation?

Painless disinflation occurs when the Government policy aimed at reducing inflation is credible and if the expectation is rational. It happens when the Government works on reducing the high levels of current inflation without increasing the current unemployment rate. You can read about the Inflation in Economy- Types of Inflation, Inflation Remedies [UPSC Notes] in the given link.

Further readings:

  1. Inflation Targeting: Methods, Drawbacks and Benefits
  2. Consumer Price Index (CPI) – CPI and its Types [USPC Indian Economy Notes]

Leave a Comment

Your Mobile number and Email id will not be published. Required fields are marked *