If you have a few minutes, and the slightest interest in the subject, I urge you to read Sumeet Kulkarni’s excellent post, “Inflation for dummies – by a dummy.” It explains, among other things, why “inflation is a tax which we pay equally, independent of our income,” how Indian’s export successes are subsidized by “you and every Indian citizen – including the poorest,” and why “export-import balance” is a meaningless term.
(Link via email from Gaurav Sabnis.)