If FM has courage, he’ll give us inflation-indexed bonds

.....rate of consumer inflation (or even 1.5 percent) instead of a bank fixed deposit at 9 percent (the highest available with good banks right now). This means one would get 11 percent this year on indexed bonds. The fact that government is not offering such a safety net against inflation means it has no intention of preventing the debauchery of the rupee through high-inflation policies. High inflation boosts gold even more since gold imports worsen the current account deficit and weaken the rupee —artificially bloating the returns on gold in rupees. The finance minister and even the central bank are barking up yet another wrong tree by pretending gold is the problem, when the problem is inflation.......

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