http://www.eastasiaforum.org/2010/07/30/india-controlling-inflation-without-hurting-growth/ Economics, Politics and Public Policy in East Asia and the Pacific Sun, 12 Feb 2012 22:50:38 +0000 hourly 1 http://wordpress.org/?v=3.2 http://www.eastasiaforum.org/2010/07/30/india-controlling-inflation-without-hurting-growth/comment-page-1/#comment-163662 Prof Divakar Rao Mon, 27 Sep 2010 14:19:49 +0000 http://www.eastasiaforum.org/?p=13201#comment-163662 The Indian inflation is both demand driven and supply constrained that would push up costs. Right now, we do not have a comprehensive study to seggregate these two factors' influence on Inflation in India. Nor do we have any clear cut mechanism to estimate/guage the inflationary expectations in the country. More driven by external factors of other countries. Though the inflation has been on the rise in the recent months, one should not forget that the middle and upper segments of the society have enough purchasing power as is evident from the rise in the real per capita incomes. What is required is not mindlessly resorting always to raise in the repo and reverse repo rates by the RBI, but rather to provide more credit to the productive sectors at cheap rates and discourage speculative spending. On the supply side, an appropriate distributve policy coupled with regulating the supply of industrial/ crucial inputs is needed. The article is more textual and lacks the ground realities that would help find a solution The Indian inflation is both demand driven and supply constrained that would push up costs. Right now, we do not have a comprehensive study to seggregate these two factors’ influence on Inflation in India. Nor do we have any clear cut mechanism to estimate/guage the inflationary expectations in the country. More driven by external factors of other countries. Though the inflation has been on the rise in the recent months, one should not forget that the middle and upper segments of the society have enough purchasing power as is evident from the rise in the real per capita incomes. What is required is not mindlessly resorting always to raise in the repo and reverse repo rates by the RBI, but rather to provide more credit to the productive sectors at cheap rates and discourage speculative spending. On the supply side, an appropriate distributve policy coupled with regulating the supply of industrial/ crucial inputs is needed. The article is more textual and lacks the ground realities that would help find a solution

]]> http://www.eastasiaforum.org/2010/07/30/india-controlling-inflation-without-hurting-growth/comment-page-1/#comment-138538 Steven Mon, 02 Aug 2010 17:25:27 +0000 http://www.eastasiaforum.org/?p=13201#comment-138538 One has to realise the effects of inflation and how it can be used as a boon to increase production, lead simpler lifestyles and create newer methods to do what we do better and faster. Supply - Demand and Consumption must play a vital role in how we can maintain and sustain inflation at required levels in moderation. One has to realise the effects of inflation and how it can be used as a boon to increase production, lead simpler lifestyles and create newer methods to do what we do better and faster. Supply – Demand and Consumption must play a vital role in how we can maintain and sustain inflation at required levels in moderation.

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