Friday, October 21, 2011

Pranab’s inflation options: Higher taxes or higher rates?

...Over the last six months, even as Subbarao sounded firm, the government undermined him by talking of rates being too high and indulging in loose talk of inflation-control being just round the corner. This continues to be a pipedream, and inflationary expectations have taken hold in the economy. Both incomes and prices will continue to spiral in this scenario....

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