What is role of RBI in controlling inflation from 1949 to till now?
Its reserve bank of India. RBI believes that cause of inflation is high money supply in economy hence to try to control inflation RBI usually increases rate of interest to make money costly and try to reduce inflation, In fact inflation that cost of living depends on deman and supply and cost of production and not on money supply. Money supply can be controlled by CRR Cost of production can be controlled by REDUCING rate of interest. Supply can be enhanced by cheaper imports.
