I am in favour of growth, but, inflation has to be checked, so the Govt. and RBI should work in tandem, GOVT. should try to push for growth and RBI should check inflation, but work must be in tandem, BOTH SHOULD AGREE ALSO AND NO DICTATORSHIP from any side
The series of government reforms started only after Pranab Da left for Rastrapati Bhawan. The unfortunate part is that government remained helpless as long as Pranab Da was finance minister. It is sad that individual called shot even when they were hurting economy. Are we to say that the government and our institutions fail at times. Congress could not shift or contain Pranab because he was their political trouble shooter. But that has had bad effect on economic governance. The recent policy reforms will take time to deliver. Till than we need to be patient. RBI should lower rates. That is not a choice but compulsion to spur growth. Will Governor behave like earlier Finance Minister- Wrong on Growth and Inflation ?
Yes. RBI policy has only hurt growth without being able to control inflation. Inflation in India is result of supply side constraints. Government should focus on reducing wastage in all spheres of life. Individuals should also postpone their urge to splurge at the moment.
Inflation at this stage is not linked to interest rates it is now linked with inefficiency of the system and corruptions in the governance .RBI governor should cut rates at least 0.50 bps otherwise growth will not be manageable even by rates cut in future.
JUST CONTROL INFLATION AND RUPEE FALL FIX THE EXCHANGE RATE REDUCE GOLD IMPORT AND BAN CURRENCY TRADING BAN USELESS ITEM TO IMPORT. ( STOP CORRUPTION STOP OFFERING BRIBE ) THEN ECONOMY WILL GROW FAST.........
ECONOMY--GROW---WITH--HONESTY--NOT--WITH--CORRUPTION.----SO JUST TRY TO BE HONEST...
The Ben Barnanke formula DOES NOT WORK. Giving cocain injection to get a spurious strength is short lived at the best and later the fall is drastic. RBI should not follow in Ben Barnanke foot steps