Inflation is at 3%, in
INDIA it is over 10% and everything seems to be fine, because we have enough to
feed inflation, i mean supply stocks are enough, and if the government really
needs it can bring inflation near 5-6%, which is manageable. The Government here
needs will power. Nobody buys consumer-durables out of his monthly incomes.
Nobody's is that resourceful, i mean the majority. Manipulating expectations is
another way around, only if you do not take them into another trouble. The
point is, if you do not want to drop money from helicopters choose to pay them
in interest-rates, i mean higher interest rates, around 8-9%. Here you can
choose to print some currency. It is supposed to do two things, it will affect
expectations, that the economy is reviving, and second it will affect savings,
actually savings in banks. Banks' confidence will revive, too. Inflation around
8-9% for a reviving economy is not bad. "IT'S JUST AN OPINION."
Subscribe to:
Post Comments (Atom)
The Reserve Bank of India (RBI) needs to cut interest rates to combat a slowdown caused by tariff issues.....
Lowering interest rates can stimulate domestic demand when facing tariffs and reduced export demand by making borrowing cheaper for consumer...
-
India's public debt, encompassing the center and state governments, is a significant component of the overall debt landscape, and its ...
-
Employment can be viewed as both a demand variable and a supply variable in the labor market. Businesses, as employers, demand labor to pr...
-
In the absence of a reserve currency, a token system could be used for international trade settlements by creating a globally accepted dig...
No comments:
Post a Comment