Many experts argued against retaining 4% plus-minus 2% target, while some wanted to scrap the framework altogether. But it provides stability, can help growth.
Inflation has been consistently over 6% over the last few months on account of rising food prices and supply constraints. It touched a 77-month high of 7.6% in Oct.
The reconstituted Monetary Policy Committee, which met from 7 to 9 October, had decided to keep the benchmark lending rates unchanged in view of the hardening of retail inflation.
Barring a second wave, India stands poised to shrug off the deathly grip of the virus and renew its tryst with its pre-Covid growth trajectory, says RBI Governor Das.
RBI must work towards better transmission mechanism, for which India needs deep & liquid bond market, competitive banking sector & regulatory framework.
The panel was scheduled to meet for three days beginning 29 September for RBI's bi-monthly monetary policy review. RBI did not give any reason for rescheduling the meet.
Weak governance, corruption and poverty continue to define tribal life in India. The introduction of industrial and mining projects has benefited contractors, politicians and officials more than Adivasis.
Clean energy is “no longer the sideshow, it is the show”, BVR Subrahmanyam told the Odisha summit, warning India to lead the global shift or risk others’ tech dominance.
Dubai airshow crash & pilot death have rekindled concerns over pilot safety, and need for smarter automated systems that can step in when G-forces, temporary loss of consciousness hit the pilot.
None of Pakistan’s PMs has lasted 5 years. That the current PM has given Asim Munir 5 years shows that of all military dictatorships history has seen, Pakistan’s is most creative.
Is inflation really under control? Every month, I find that my groceries and vegetables bills keep climbing up! We are just a family of three senior citizens. No luxury stuff for us.
Look at daily edible items:
(1) Toor dal increased from Rs.80/ kg (March 2020) to Rs.140/ kg.
(2) Musturd Oil increased from Rs.105/ kg (March 2020) to Rs.150/ kg.
Mrs. ILA PATNAIK should calculate herself the price rise/ inflation. It appears that she is not an economist. She is modinomist.
The text books I read said inflation goes up when demand goes up. In a country reeling under covid-19, abject poverty, miserable employment prospects, demad is not there. No ticky, no laundry used to be chinese laundry women’s claim during thdepression era in the USA. No money, no demand. Inflation had nothing to do with the GOI in that sense.
“Why Modi govt has done well to maintain continuity in inflation targeting framework”
A surprise heading!!!
A well presented piece where it is established that the primary aim of any economy is growth. Inflation targeting is one strategy to achieve growth – albeit it has to be handled deftly.
The Indian economy may not be ready to adopt alternate available strategies for growth such as targeting currency exchange rates, unemployment rates (US),( For instance: There may be an economic trade-off between unemployment and inflation, as policies designed to reduce unemployment can create inflationary pressure, and vice versa) GDP growth etc
Tail piece: Very little place for a full discussion. But goof effort to say it all
Is inflation really under control? Every month, I find that my groceries and vegetables bills keep climbing up! We are just a family of three senior citizens. No luxury stuff for us.
Look at daily edible items:
(1) Toor dal increased from Rs.80/ kg (March 2020) to Rs.140/ kg.
(2) Musturd Oil increased from Rs.105/ kg (March 2020) to Rs.150/ kg.
Mrs. ILA PATNAIK should calculate herself the price rise/ inflation. It appears that she is not an economist. She is modinomist.
The text books I read said inflation goes up when demand goes up. In a country reeling under covid-19, abject poverty, miserable employment prospects, demad is not there. No ticky, no laundry used to be chinese laundry women’s claim during thdepression era in the USA. No money, no demand. Inflation had nothing to do with the GOI in that sense.
“Why Modi govt has done well to maintain continuity in inflation targeting framework”
A surprise heading!!!
A well presented piece where it is established that the primary aim of any economy is growth. Inflation targeting is one strategy to achieve growth – albeit it has to be handled deftly.
The Indian economy may not be ready to adopt alternate available strategies for growth such as targeting currency exchange rates, unemployment rates (US),( For instance: There may be an economic trade-off between unemployment and inflation, as policies designed to reduce unemployment can create inflationary pressure, and vice versa) GDP growth etc
Tail piece: Very little place for a full discussion. But goof effort to say it all