Apropos A Seshan’s article “India is suffering from inertial inflation” (December 10), experts have interpreted the inflation phenomenon in different ways. That has added to the confusion of policy makers. The inflation versus growth trade-off – relevant as it may be analytically – is not as constraining in policy formulation as it is made out to be. There cannot be a Reserve Bank of India (RBI) prescription for reviving growth at variance with what the finance ministry suggests. The monetary and the fiscal policy mix, or the public expenditure policy, cannot work in isolation. Both RBI and the finance ministry allowed inflation to acquire structural proportions................
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