Friday, May 17, 2013

Interest in inflation

...........The problem, however, is that the bonds are being indexed to wholesale and not consumer price inflation. Since households are only bothered about the latter – currently ruling almost twice that of the former – IIBs hardly offer an alternative to gold or real estate as a hedge against inflation. Nor has the Government proposed any Section 80 deductions or other tax sops for investment in these bonds. ..........

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