........Both macro policies like monetary tightening by the RBI as well as commodity-specific measures implemented by different branches of the government (trade policies and domestic interventions in food markets) have to be used to deal with inflation. The questions to ask are: Why have interest rate policies not been as effective as intended? Is food demand interest rate sensitive? Do food prices lead to generalised price changes leading to inflation as macroeconomists know it? Overall, .......
No comments:
Post a Comment