Friday, November 16, 2012

RBI's Credibility...

 Article; http://economictimes.indiatimes.com/opinion/interviews/the-real-problem-for-india-is-d-subbarao-shankar-sharma/articleshow/17215127.cms   Comment;

Subbarao is doing what he is supposed to do as a central banker. The RBI's credibility depends upon his actions. Price stability and full-employment are the two macro-economic objectives of monetary and fiscal policies. The economy on the employment front is doing fine we need price stability to check inflationary expectation to limit the demand for increase in income and wages economy wide to avoid the cost-push inflation...

Welfare programs signal a shift from an empowering growth-based model to a more palliative, subsidy-dependent one.....

  The rate of poverty reduction was significantly faster and arguably more inclusive in the 2004–2014 period than from 2014 to 2025, despite...