Ways Out...

Article;

RBI Likely to Cut Rates for First Time in Nine Months


Comment;

We need a proper threshold of this economic stimulus otherwise purpose will not be solved. At least 50 basis point cuts. May be we can do it in parts 25 basis point this month and 25 later. But better would be to push little harder since growth rate has come down more than expected below 6. To push it 7 we need to press a little harder. If the RBI changes its base period, a little higher normal period, it can opt for a more aggressive rate cut. But that is only if 2012 prices are considered normal and base...

Article;

Federal Reserves Biggest Debate When to Slow Asset Buying


Comment;

The target is good, unemployment rate. Inflation won’t rise too much above the natural unemployment. It will resist increasing since there is too much unutilized capacity in the market. Inflation will first go up then will come down. If we are targeting inflation we need to push it back every time it comes down. How long will people keep money as asset. There are many concerns related with it like security of that money and all. And slowly they will resume spending, investment and consumption, and that will bring out economy from liquidity trap. Spending is more important even by the central bank eventually all spending will improve. Its a chain reaction. Let the economy feel it is wealthy...