Tuesday, November 26, 2013

By all means, go for the gold

.......The government borrows huge amounts from the market to meet its increasing expenditures, such as enhanced salaries to government servants. This leads to an increase in interest rates. The Reserve Bank prints more money to keep the interest rates down. This printing leads to inflation. The same amount of goods produced in the economy is chased by a larger number of currency notes. Thus, your loss is government’s gain..........

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