Dynamics of Inflation in BRICS Countries An Analysis of Nature Causes and Impact

Abstract

Inflation is a most leading and dynamic issue which influence macroeconomic performance of almost all the countries. BRICS nations also are not exception of it. Double-digit inflation has been a major threat to economic growth in most of the developing countries, as they have a large negative output gap or excess production capacity. Central banks of all the nations, especially after the global financial crises, have started grappling for controlling high inflation and managing fragile economic growth. Monetary authorities also in these countries are trying to maintain a pro-growth monetary policy. newlinePresent study seeks to examine the impact of macroeconomic factors on inflation, effects of inflation on macroeconomic performance, and also to examine impact of inflation management measures in BRICS countries. The research work is divided in seven chapters. Chapter one is related with introduction to inflation, present scenario, objectives and research methodology adopted for achieving the objectives of study. The second chapter presents the background of BRICS countries including their origin, formulization and importance in the international system and developments. It also presents profile of BRICS nations, details of BRICS summits held during 2009 - 2015, and discusses the trend and pattern of inflation in BRICS countries. newlineThe third chapter presents an exhaustive review of prominent studies carried out by researchers in India and abroad. The information of selected macroeconomic factors and their impact on inflation in BRICS nations is included in chapter four. Chapter five presents analysis of the impact of inflation on macroeconomic performance in BRICS countries. Chapter six elucidates inflation management measures adopted in the BRICS member countries. Last chapter of the thesis presents conclusion drawn by the researcher and offers suggestions. newlineThe researcher believes that present work is an addition to existing knowledge. The findings of the study will be beneficial to Policy Makers, Corporates, Financial Institutions, Investors etc. Further, the study would open new vistas of research for academicians, researchers and students working in the area of macroeconomics in general and inflation in particular. newline newline