Tuesday, June 19, 2012


We have heard this word 'Inflation' a lot of times when we watch the news channel or read newspapers. Inflation in monetary terms is the rate by which the prices of goods and services are raising when compared to sometime in the past. Many economists claim that a controlled monetary inflation is good for the economy.

Apart from the inflation in currency, inflation in various other fields are witnessed today. For example, if anyone gets admitted to a private hospital in India, they spend a certain amount of time in the intensive care unit (ICU) no matter what kind of illness they initially had. A decade earlier ICU was used only for 'intensive' care. But now, ICU is just another ward. To combat the loss in value of ICU, some hospitals have introduced a CCU (Critical care unit). Some see that CCU is the new ICU. Isn't this inflation too?

Almost anyone who earn around 20,000 rupees a month gets a gold credit card. A gold card was something preserved for general managers and CXO level people a decade and a half back. Now, platinum and other levels have taken over as the superior levels in the credit card market. This has brought down the value of a gold card. Isn't this brand inflation?

A customer care executive of today is the receptionist a decade back. A marketing officer is someone who sells soaps door to door. Now, executives are at all levels such as a facilities management executive who sweeps the floor. There was a time when executives were the top level people who had great powers within an organisation. The value of executive has fallen down so much in the past years. Isn't this designation inflation?

In the earlier days, clothes are measured in inches or centimeters. Now they come in sizes. It was discovered that size 10 of today is an inch bigger than size 10 of last decade. Inflation has crept in size too.

A controlled monetary inflation is good for everyone. Inflation, in any other area, can only bring the value down. It makes us feel that we have access to bigger things such as possessing a gold card, or working as a customer service executive, or fitting into size 10 all the time or staying in a critical care unit. Although we are led to believe that we are doing greater things, in reality, we are only fooling ourselves.

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