THE PAKISTAN DEVELOPMENT REVIEW
Deficit Financing, Controls, and Movement of Prices in India since 1947 by A. Vasudevan. Bombay: Allied Publishers Private, Ltd., 1967. pp.239.
Experience with the processes of inflation and growth is varied around the world and through time. In Western Europe and the United States, there has been rapid growth (or slow growth) when prices were rising and when they were not. The Japanese success story shows that more or less chronic inflation is consistent with a high growth rate; but it also shows that the growth rate is less rapid at the highest (observed) rates of inflation. Socialist countries, like Poland and Russia, have experienced (planned?) inflation in accompaniment to growth. Recent Brazilian and Mexican experience suggests that a rapid inflation is consistent with (contributed to ?) a high growth rate. Indonesia and Ghana provide examples of inflation leading to stagnation or disintegration rather than progress. Other contradictory examples add to our mixed bag of empirical evidence.