Macro-economic operation is a matter of major concern for contemporary governments. All the keymacro-economic variables are needed to serve in synchronization for the smooth functioning of the economy else economy may fall into disequilibrium. The position of inflation in any economy is nearly connected to other macro variables. Hence, any movement in the inflation variable may have considerable influence on the performance and functioning of other variables. Accordingly, this may disturb the growth and stability of any economy. Thus, it's imminent to take care of the performance of inflation in the economy. It's an honored fact that inflation should be in controlled limits. Nearly every economy of the world, in the history of its development, had encountered this problem recurrently. Indian economy is no exception. The Indian economy has witnessed mild to severe forms of inflation from time to time. The different ways of financing the public deficiency have different financial goods; some of them, because of their impact on the money supply, increase the price situations. Eventually, public husbandry are getting more integrated into one international economy, which makes inflation a international miracle and price increases move from one country to another with ease. India is facing an acute problem of inflation; hence, its dynamics demanded to be explored for the acceptable result of such a problem. Though similar studies are accepted in literature, utmost of them happed in other countries. Whatever studies took place in India are more specific and don’t give a complete result. Thus, this study is intended to be more comprehensive taking financial and real factor contemporaneously under consideration.

Keywords: Monetary, Economy, Inflation, Development, Unemployment, Demand, Dynamics, Stability.