Business Case Studies, Organizational Behavior Case Study, Economics, Monetary Policy Case Studies

print page
Tell A Friend
Bookmark

Monetary Policy Case Study

IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
Case Title:

Inflation Measure: CPI or WPI?

Publication Month and Year : May 2009

Authors: Nitu Gupta & Akshaya Kumar Jena

Industry: Not Applicable

Region: Global

Case Code: MOP0028

Teaching Note: Available

Structured Assignment: Available


OR





Abstract:
Inflation has been a nagging problem plaguing the economies across the world at various times. As negative effects of inflation are enormous, adoption of various anti-inflationary policies becomes inevitable. Inflation targeting and its measurement have become the prerequisites in the macroeconomic policy matrix of the economies. Inflation being a significant economic concept affecting decision-making in business firms or other management units, there is an attempt to resolve the dilemma whether Consumer Price Index (CPI) is to be adopted or Wholesale Price Index (WPI) as a measure of Inflation. Though most of the major economies of the world have opted for CPI, WPI has its own merits too. As CPI and WPI differ conceptually in terms of their purpose and use, commodity coverage, weights, associated markets and the base year, both often show difference in direction and magnitude. Consequently, the choice continues to be difficult, if not arbitrary.

Pedagogical Objectives:

  • To know the brief history of inflation around the world
  • To understand the various types of inflation (Demand-pull vs Cost-push)
  • To understand the various measures of inflation (CPI vs WPI)
  • To elucidate the effects of inflation and appreciate the significance of inflation from managerial perspective and evaluate its desirability
  • To understand the role of anti-inflationary policy in containing inflation.

Keywords : Inflation, hyperinflation, types of inflation, modern hyperinflation, cost-push inflation, creeping inflation, walking inflation, running inflation, Effects of inflation, CPI, WPI, Anti-inflationary Policies

 

Related Links

Useful links

Currency Exchange Rates

Case Study :
   INR 200 = USD ($)

Structured Assignment:
   INR 150 = USD ($)

Teaching Note :
   INR 400 = USD ($)
c

Ad

Contact us: IBS Case Development Centre, Plot No. #44, Nagarjuna Hills, Punjagutta, Hyderabad - 500082. INDIA
Ph: (+91) 40 23435310/11, 23435393 Fax: (+91) 40 23430288
E-mail: casehelpdesk@ibsindia.org

©2020-2025 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap