A Comparative Study For Exploring The Nexus Between Inflation and Economic Growth

Abstract

This research examines the relationship between unemployment, inflation, and GDP growth, focusing on how these factors impact unemployment rates and economic development. It also explores income inequality, which can impact price increases and economic development, and wealth inequality, which can hinder economic growth by limiting market participation and human capital development. The study uses the CPI to measure inflation, a measure of marketwide price increases, to understand its complexity. Objective of the study is to identify a nonlinear relationship between inflation and economic growth, distinguish significant disparities between developed and developing economies, and propose measures to assist officials in controlling inflation and promoting long-term economic growth. The study uses a descriptive and explanatory research design to analyze macroeconomics and the Indian economy, utilizing secondary data from the Reserve Bank of India's website and quarterly reports. The research indicates a link between living costs, inflation rates, and economic growth. Excessive inflation can hinder economic development, while economic growth can alleviate living expenses. The quantity of money also influences inflation and growth, necessitating legislation for balancing these factors.