Inflation has been a challenging aspect of policymaking. In such situations growth in the income levels of the population living below the poverty level can never be measured accurately (due to higher infation poverty section will show higher income) . My question is: Due to higher inflation why cannot we measure growth in the income levels of the population living below poverty line accurately? enter image description here

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    $\begingroup$ Could you clarify your question? What is the link between inflation and inability to measure income levels? $\endgroup$
    – Brennan
    Aug 25 '19 at 2:36
  • $\begingroup$ I have edited my question. $\endgroup$
    – Venky
    Aug 25 '19 at 6:07
  • $\begingroup$ Thanks! Why can’t we measure growth in the income levels accurately—where did you read this? Why couldn’t we just account for inflation it in our calculations of income growth? $\endgroup$
    – Brennan
    Aug 25 '19 at 6:49
  • $\begingroup$ It's in the text of Indian economy book. $\endgroup$
    – Venky
    Aug 25 '19 at 7:55
  • $\begingroup$ Angus Deaton has been discussing these sort of issues for some time now. Im really not sure how this can be said. $\endgroup$
    – EconJohn
    Aug 25 '19 at 18:18

That's not specific to poor, any income increases with inflation.

The real problem is that the poor receive goods for free (charity, squatting, rent nonpayment) so their real income can never be measured.


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