Here we argue that due to the difference between the real GDP growth rate and nominal deposit rate, a demand pull inflation is induced into the economy. On the other hand, due to the difference between real GDP growth rate and nominal lending rate, a cost push inflation is created. We...

Here we argue that due to the difference between the real GDP growth rate and weighted average deposit rate, a demand pull inflation is induced into the economy. On the other hand, due to the difference between real GDP growth rate and weighted average lending rate, a cost push inflation is...