Demand-Pull Inflation Analysis Framework
Learn to identify and analyze demand-side pressure on prices
through systematic economic indicators. You’ll develop the
ability to recognize when aggregate demand exceeds supply
capacity and trace how consumer spending, investment, and
exports create upward price pressure. We walk through 4-5 case
studies from recent Indian economic cycles where demand surges
drove inflation.
- Aggregate demand components in Indian context
- Identifying excess demand signals in real-time data
- Demand-side monetary policy transmission mechanisms
Cost-Push Inflation Mechanisms and Drivers
Examine how supply-side constraints and rising input costs drive
inflation independent of demand pressures. This module covers
wage-price dynamics, commodity price transmission, and how
global supply disruptions ripple through Indian production
chains. You’ll analyze real datasets showing how crude oil,
fertilizer, and metal prices translate into consumer price
increases over 6-18 month horizons.
- Input cost escalation pathways in Indian supply chains
- Wage-price dynamics and labor market effects
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Global commodity price transmission to domestic inflation
Supply Chain Disruption and Inflation Effects
Understand how logistics bottlenecks, port congestion, and
semiconductor shortages create cost pressures that ripple across
sectors. We examine post-pandemic supply chain shocks and their
3-4 month lag effects on inflation. You’ll learn to track
leading indicators of supply-side stress and distinguish
temporary disruption-driven inflation from structural pressures.
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Mapping supply chain bottlenecks to sector-specific inflation
- Time-lag analysis between disruptions and price impact
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Distinguishing transitory vs. persistent supply-driven
inflation
Monetary Response and Policy Analysis
Analyze how central banks respond to different inflation drivers
and why one-size-fits-all policy responses often miss the mark.
This framework helps you evaluate RBI monetary policy decisions
through the lens of demand-pull vs. cost-push inflation. You’ll
work through 3-4 case studies showing when rate hikes work
effectively and when they risk choking growth without
controlling inflation.
- RBI transmission mechanisms and policy effectiveness
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Assessing when rate hikes address root causes vs. symptoms
- Policy trade-offs between inflation control and growth
