Black money is caused of Inflitation"Explain.
Answers
That is what happens when black money causes inflation. ... Black money is generated through corrupt activities like bribes, and “cuts” paid to officials, hoarding and selling commodities at more than market prices, and tax evasion.
Explanation:
Black money is being used in a big way to purchase consumer goods, including food grains, for hoarding to cause artificial shortage, jacking up prices and then selling them for huge profit," he said in his lecture on 'Ramrajya Kal Aur Aj' here.
Swamy claimed those hoarding black money had invested upto 70 per cent of their capital in consumer goods and were using the profits to buy food materials for black marketing.
It had led to the unusually high inflation rate of about 16 per cent which was negating India's 9 per cent growth, he said