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...

The Superiority of Anchored Low Inflation Expectations: Little Deflation Over High Inflation in the Long Run.....

In macroeconomic theory, the long-run behavior of economies hinges on the interplay between aggregate supply, aggregate demand, and sustaina...