Thursday, March 21, 2013

Inflation is no more rate-bound

...........As policymakers look for options to reverse a widespread deceleration in the broader economy, the UPA government and the Reserve Bank of India (RBI) are perhaps facing their biggest macroeconomic reality: the RBI's bitter medicine to keep interest rates high has not tamed prices, but crimped growth. And the reason may lie in the “new normal” of inflation..........

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