Gold is not a wasteful investment

....There is only one way for the runaway inflation to come down — by reducing the credit growth in the economy. This can be achieved without compromising growth if the government is able to reduce its penchant to spend taxpayers' money without any improvement on the fiscal side. On the monetary front, this can be achieved by the Central bank pushing the interest rates even higher. There is a third way by which the credit in the system can be reduced; as the forex reserves move out of the country, the corresponding liabilities against them, i.e. the rupee liquidity, has to reduce sans any RBI intervention through OMOs or CRR cuts, and this is exactly what is happening through the gold imports.......

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