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...

Although government transfer is a well-known fiscal variable, it can significantly influence the overall supply of money in the economy. Beneficiaries of government transfer program will consume a portion of it while the rest is saved and these initial savings will then be amplified inside the...

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...