Sunday, December 16, 2012

Remove Bottlenecks...



Article;

http://economictimes.indiatimes.com/news/economy/indicators/indian-economy-may-beat-expectations-in-2013-goldman-sachs/articleshow/17542523.cms


Comment;

If infrastructure and supply side bottlenecks were not there the chances are that the economy had grown with a growth rate equal to the rate of inflation, i mean 7-7.5%. Because inflation is also an index of increase in consumer spending even if it is under compulsion, read price-rise. The higher (rational) the inflation target set by an economy or the actual inflation the higher the growth rate probably it can achieve.


No comments:

Post a Comment

"Everybody is worried about rate cuts and nobody for lower interest rates on savings, when all save and few borrow..."

Growth is sacrificed when the value of the money is sacrificed because spending goes down due to inflation, and people buy less due to high ...