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The ‘ghost’ of inflation that has constantly haunted the Indian economic development has once again taken shape. This is mainly due to the lack of empirical models to help management agencies to solve the problem at its roots.

India‘s high food inflation is mainly due to supply-side constraints, and the central bank has been taking steps to control a buildup in inflationary expectations, its governor said Saturday.

“Monetary policy becomes the first line of defense, so if inflation persists for a long time, people think inflation is going to be high, and that becomes a self-fulfilling prophecy,” D. Subbarao said few days ago at a conference in Bhubaneswar.

Causes of Inflation

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CONSTITUTION OF INDIA

CONTENTS

PREAMBLE
PART I
THE UNION AND ITS TERRITORY
ARTICLE
1 Name and territory of the Union.
2 Admission or establishment of new States.
2A [Repealed.]
3 Formation of new States and alteration of areas, boundaries or names of existing States.
4 Laws made under articles 2 and 3 to provide for the amendment of the First and the Fourth Schedules and supplemental, incidental and consequential matters.