Madness in monetary policy
In India we have a monetary authority that admits to not understanding inflation — but persists in damaging an already weak economy because it does not understand it
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In India we have a monetary authority that admits to not understanding inflation — but persists in damaging an already weak economy because it does not understand it
Average CPI inflation for eight months since September 2016 has been 3.7 per cent. How long are you going to wait and watch, MPC, before you admit that you were wrong in your assessment?
One logical way for the MPC to change course and lower rates is by being Keynesian at the June 7 meeting — the facts have changed, so we have changed our mind
The inflation forecast is the most important aspect of the most crucial economic decision that the RBI makes — it needs to be more in tune with reality.The Indian economy has likely gone through a mega structural-break experience via demonetisation....
A ‘rate hike in time is just fine’ is a wise RBI saying. With CPI inflation at near-historic lows, this must mean, according to the RBI law of mean reversion, that the future will bring high inflation. Hence, the urgent...
RBI’s obstinate refusal to cut policy rates, and the moving of its policy stance from neutral to accommodative, is not based on economic logic. Both headline and core inflation data argue for a rate cut
The economy provides scope and demonetisation, the rationale for a flat income tax rate and a negative income tax for the poor and the needy.
Rumours of even a 1 percentage point decline in GDP growth for 2016/17 are vastly exaggerated, have no basis in logic or fact.
The recent anti-corruption, anti-black money drive of the BJP is being characterised by the same intellectually old people as being against the interests of the poor.
Experts have long questioned the effect of currency undervaluation on overall GDP growth. They have viewed the underlying basis for this policy—intervention in currency markets to keep the price of the home currency cheap—as doomed to failure on both theoretical...