For this proposal , I want to study the effects of inflation in general to the

economy . This is a very important topic as we are in the latest stage of

development of our economy . And inflation is also a very important topic and
economy is strongly corelated to inflation . This topic is also relavelent to my
academics . So I seek your approval for this research question .

This topic is very important for me because I want to work as research analyst
after completion of my studies . I am very much interested in studying economics in
general and the factors that influence it . So in this proposal , I would study the
effects of inflation on economy .

Inflation is increase in general price levels of goods and services over a period
of time . Inflation rate is the parameter that is used to measure inflation in term
of percentage . In this proposal we will see how this affects economy . The sources
used are investopedia , wikipedia and thebalance .

Inflation tends to increase the aggregate money income of the community as a whole
on account of larger spending and greater production. Similarly, the volume of
employment increases under the impact of increased production. But the real income
of the people fails to increase proportionately due to a fall in the purchasing
power of money. A mild inflation promotes economic growth, but a runaway inflation
obstructs economic growth as it raises cost of develop�ment projects. Higher
profits , better investment returns , increase in preduction ,better income , more
employement are the favourable effects of inflation . On the other hand , the
undesirable effects are Fixed-Income Groups experience a fall in income ,
Speculative Investment Increases , Lenders face Losses and Negative Impact on
Export Income . So this is not a single sided process . It is a very complex
process that effects different segments of economy in different ways , as discussed
above . Economy need some inflation to grow . As a benchmark 2% inflation rate is
ideal for the growth of economy in uniform and desired way . Anything above or
below this rate is considered bad for economy .

For the complete project , I want to break the whole topic in quantitative and
qualitative sections . In qualitative section , The theory will be discussed along
with the views of economists . In quantitative section , the views will be
supported by real statistics . Then inference will be drawn from the statistics and
its corelation with qualitative section will be cooncluded . I have planned to give
4 hours each week to this projects , mostly on weekends .

On the closing note , I want to thank you for giving your time to read this
proposal . I am looking forward for feedback and the questions related to my
proposal . So can i proceed with this proposal ?

REFERENCES-
1)https://www.investopedia.com/ask/answers/111414/how-can-inflation-be-good-
economy.asp
2)https://www.thebalance.com/what-is-inflation-how-it-s-measured-and-managed-
3306170
3)https://en.wikipedia.org/wiki/Inflation
4)https://www.investopedia.com/articles/insights/122016/9-common-effects-
inflation.asp