Inflation promotes Growth

Inflation is necessary for growth!! No economist or for that matter a finance expert will agree to it .Traditional view is that Inflation decreases the value of money which is true and causes the Interest rates to go up which is also true but because of higher interest rates growth needs to be slowed down or it stops completely need not be true.

In inflationary economy, Liquidity is so high that supply doesn't match up with demand but it will be interesting to ask if there is really a found increase in demand? Technically it should happen but theoretically what if in spite of increased liquidity there is no demand coming up!!So if there is no increase in demand Inflation should not be a concern.Higher interest rates makes it difficult to access money easily especially for Industries which then speed down,halt or postpone their Investment and expansion plan and which in turn causes job loss or slowed employment and thus becomes real hindrance for growth!

In spite of liquidly we can not grow which is such a irony!!

I fear all industrialists and governments don't want people to grow for their own personal causes. Industrialists wants to sell same outdated technologies and products to everyone otherwise they will be wiped out if they go for overnight changes with reduced profits. Politicians will lose their importance and influence in society if there are no poor people . If all this liquidity gets evenly distributed then there will not be any concern for rising inflation and Interest rates.But it never happens and Liquidity is always concentrated in few pockets.

Therefore role of Entrepreneurship is vital for real growth that despite unfavourable conditions in market to experiment,launch or grow they keep striving to bring innovation on table and create new technology for people.They research,invest and win over the existing wrong practices of Industrialists and politicians nexus.

Liquidity is the real champion to bring growth because this is the time when many gets inspired to bring the change against all odds.