Project report on inflation

Ancient China

Printing paper money to establish fiat currency was first introduced in Song Dynasty China. The government spent a lot of money conducting costly battles during the Mongol Yuan Dynasty, so they responded by printing additional money, which caused inflation. Fearing the same type of inflation that afflicted the Yuan dynasty, the Ming Dynasty first rejected paper money in favour of copper coins.

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   Medieval Egypt
  

Thousands of people and about a hundred camels allegedly followed Malian king Mansa Musa on his hajj to Mecca in 1324. When he came through Cairo, he spent or gave away so much gold that its value in Egypt was lowered for almost a decade, diminishing its purchasing power. Mansa Musa's visit was noted by a contemporary Arab historian as regards:
Until they arrived that year, gold was quite expensive in Egypt. The mithqal never went below 25 dirhams and was usually higher, but its value dropped after that and it became inexpensive, which it has stayed since. The mithqal is limited to a maximum of 22 dirhams. Because of the great quantity of wealth that they brought into Egypt and spent there; this has been the condition of affairs for nearly twelve years till now.

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   Price revolution" in Western Europe "
  

Western Europe suffered a large inflationary cycle known as the "price revolution" from the second half of the 15th century to the first half of the 17th, with prices rising by around sixfold on average over 150 years. This is frequently linked to the flood of gold and silver from the New World into Habsburg Spain, producing widespread inflation in formerly cash-strapped Europe. The recovery of European populations from the Black Death began before the introduction of New World metal, and it is possible that this started a process of inflation that was reinforced later in the 16th century by New World silver.

Objectives of the study: -

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  To research inflation in depth.
  
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  To have a deeper insight of inflation on the Indian economy.
  
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  To identify the approaches to minimize inflation in a market economy.