Since there is a right of Information act in India I hope I have full right to ask this question.
Currently India is fighting between 2 tough choices i.e. inflation vs growth. And everyone knows RBI has given more weight to growth than inflation.
Now my question is, who gave this right to RBI i.e. to decide "for growth of some sectors of economy, everyone must pay more for food, cloths and in fact everything" ?? I think it's a huge decision taken on behalf of everyone without asking anyone.............
India's Inflation and RBI's response is very symbolic as in Post Stimulus world, India is first country to have 16% Inflation in Feb - Mar 2010. And so far has failed 9 times to curb that inflation. ....
Sadly enough key decision makes are ready to ignore reality that "Nearly 80 percent of India lives less than dollar (50 Rs) a day and persistent inflation mean probably less food to eat than required". They still think that saving "Realty" sector is more important than this Reality...
Currently India is fighting between 2 tough choices i.e. inflation vs growth. And everyone knows RBI has given more weight to growth than inflation.
Now my question is, who gave this right to RBI i.e. to decide "for growth of some sectors of economy, everyone must pay more for food, cloths and in fact everything" ?? I think it's a huge decision taken on behalf of everyone without asking anyone.............
India's Inflation and RBI's response is very symbolic as in Post Stimulus world, India is first country to have 16% Inflation in Feb - Mar 2010. And so far has failed 9 times to curb that inflation. ....
Sadly enough key decision makes are ready to ignore reality that "Nearly 80 percent of India lives less than dollar (50 Rs) a day and persistent inflation mean probably less food to eat than required". They still think that saving "Realty" sector is more important than this Reality...
Amaresh : I think inflation and growth are different aspects and require different measures. Also, I am not sure how much power RBI policies have to curb the inflation. Isn't it more of a thing that several ministries will have to sit together and act against ? And isn't food inflation a global phenomenon ?
ReplyDeleteMay be you should write another blog explaining how inflation starts and could be controlled ?
On a semi-serious but factual note, inflation has a strong correlation with elections.....it dips when elections are on the horizon and shoots when they are over. So instead of RBI it is the Election Commission which can effectively curb the inflation...although only momentarily !
- Atish .
Good readingg your post
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