The article carries the message that inflation cannot be controlled even
if the interest rate is hiked and money is made dearer.RBI's presence
in containing inflation and enhancing Growth has no relevance is a fact
which gets proved with the announcement of Inflation index and GDP
growth every now and then. Urbanisation at the cost of agriculture has not only brought
down agricultural production,procurement and distribution as per the
demands generated but also brought in lot of changes in the area of
savings and investment.Manufacturing has been badly hit thanks to
erroneous policies being pursued ignoring the need for investment,
production and distribution of wealth in an equitable and justifiable
manner.The balance in the economy has been tilted in such a way that
investors care for only making fast bucks without thinking of the future
of the economy and its long term growth. RBI has lost its power of
influence in the economy in the absence of strong fiscal measures for
quite some time. The economy as it is, moving without any proper
direction and it will take a lot of time , efforts and thinking to place
it back on track. The author has well captured the problem but not
succinctly put perhaps to avoid embarrassment.
Dr.T.V.Gopalakrishnan
(This comment is in response to an article'Is inflation here to stay? that appeared in Business Standard dated 30/01/2014).
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