Wednesday, May 18, 2011

Inflation, Again...

Article;

http://timesofindia.indiatimes.com/home/opinion/edit-page/Fighting-Fit/articleshow/8419956.cms

Comment;

Inflation we are talking about is the average of rural and urban areas. In other words, areas that are developed and undeveloped within INDIA and then there are regions that fall in-between. The logic is same as the undeveloped, developing, and, developed parts of the WORLD and choosing same inflation target for all the regions in INDIA is not logical. Since they need money-supply according their local needs inflation targets also change. Therefore national targets are different from local inflation targets and growth rate for different regions is also different. However, as far as petrol prices are concerned they are largely determined on the central level and little by state forces. Decisions taken at the central level are bound to spiral even in areas that are experiencing low levels of food inflation.

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