Malcolm Merlyn Posted June 20, 2016 Posted June 20, 2016 Raghuram Rajan says RBI can never abandon inflation to focus on growth http://timesofindia.indiatimes.com/business/india-business/Raghuram-Rajan-says-RBI-can-never-abandon-inflation-to-focus-on-growth/articleshow/52834117.cms via @timesofindia Rajan tears into his detractors.
rkt.india Posted June 20, 2016 Posted June 20, 2016 Is it possible to achieve desired growth without inflation. Sent from my MX5 using Tapatalk
randomGuy Posted June 20, 2016 Posted June 20, 2016 5 minutes ago, rkt.india said: Is it possible to achieve desired growth without inflation. Sent from my MX5 using Tapatalk yes. By producing more, putting smart policies in place, controlling corruption, disruptive technologies etc.....
BeautifulGame Posted June 20, 2016 Posted June 20, 2016 1 hour ago, rkt.india said: Is it possible to achieve desired growth without inflation. Sent from my MX5 using Tapatalk Dont get it.Are u asking whether is it possible to achieve growth despite high inflation or can we reduce inflation and increase Growth at the same time?
rkt.india Posted June 21, 2016 Posted June 21, 2016 (edited) 11 hours ago, BeautifulGame said: Dont get it.Are u asking whether is it possible to achieve growth despite high inflation or can we reduce inflation and increase Growth at the same time? achieving growth and reducing inflation simultaneously. Edited June 21, 2016 by rkt.india
beautifulgame Posted June 23, 2016 Posted June 23, 2016 achieving growth and reducing inflation simultaneously. Definitely possible.Actually despite some wrong perception reasonable inflation isn't a bad thing necessarily.A reasonable level of inflation can actually be a indication of strong ecomony as there will be wage increases across sector when there is growth .And that will create inflation in the market as purchasing power of individuals increases But our problem was that it wasnt caused by significant economic improvement but due to scarcity of goods in the market .Drought was a major factor in this . That's why reducing inflation was paramount acc. to Rajan than just cutting rates to boost growth . Anyway in the last one year more than 1% interest rate have been slashed .
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