Price the farmer get for vegetables is 5 to 10 times lesser than the market price,Can Mr KC Chakrabarty explain interest rate hike in taming inflation in this contest........Has he also started talking like MMS...?????/
High inflation is not because of big spurt in demand, but it is because of hoarding, betting etc. It's high time MCX should be banned. They are the culprits rigging up prices for commodities.
Way to reduce inflation is to raid 1) Sharad Pawar 2) Karunanidhi 3) Jayalalitha 4) Lalu 5) Kalumadi 6) Mulayam 7) Mayawati Above all Sonia Gandhi The infaltion will go to minus number.
If you guys don't know monetary economics, plz just stay away from here. One of the important tools to control inflation (aggregate increase in prices) is to increase interest rates. How efective is that tool depends on a variety of factors. I fully agree with RBI Dy Governor Chakrabarty. The problem in india is RBI is influenced by the treasury or Finance Ministry unlike Japan, USA, UK, Europe or even australia.
Re: Lot of useless blabber here
by om shanti on Mar 16, 2011 12:03 PM
I am not an economist.
First I heard,price of commodities are increasing day by day.
Now they want to increase interest rates to control prices.
Are we idiots?
If they want to reduce inflation,especially of all food items,they should prevent hoarding,they should prevent black-marketing,they should eliminate all transportation bottle-necks, they should create enough cold storage,etc,etc..
Re: Re: Lot of useless blabber here
by AJIT ANAND on Mar 16, 2011 12:13 PM
WHAT RBI IS DOING IS PERFECTLY CORRECT. LEARN SOME BASIC OF ECONOMICS AND THEN WRITE AS AN EXPERT, NOT NOW
Re: Re: Lot of useless blabber here
by CBRCODER on Mar 16, 2011 12:09 PM
I agree, High inflation is not because of big spurt in demand, but it is because of hoarding, betting etc. It's high time MCX should be banned. They are the culprits rigging up prices for commodities.
Re: Re: Re: Lot of useless blabber here
by AJIT ANAND on Mar 16, 2011 12:16 PM
WHO WILL CONTROL HOARDING, RBI OR STATE GOVT, POINT FINGER ON THE REAL CULPRIT. DONT BLAME MMS, MUKHERJEE FOR EVERY THING WRONG.
Re: Re: Re: Re: Lot of useless blabber here
by om shanti on Mar 17, 2011 04:35 AM
Hoarding starts from Sharad Pawar and his Mafia and centre protects him,what will state governments do?
Re: Re: Lot of useless blabber here
by vathula on Mar 16, 2011 12:42 PM
There are two sides- supply side and demand side. You are talking about supply side, where capacity increases can happen but will take time. The hoarding etc, can be less when interest rates are higer and not lower. To hoard, you need money and higher interest means higher cost to hoard.
Re: Re: Re: Lot of useless blabber here
by om shanti on Mar 17, 2011 02:11 AM
You are talking about ideal situation in case the money is from honest source.
Do you think,this hoarding is done by money from bank? Then you are a kid.It must be from a big hawala fund.It must be from betting,match fixing,it must be from 2G scam,must be from fodder scam.Do you think interest rate really matter when it is from black sources?...
And do you think the daily labourer has more money,if he is forced to buy vegetables at Rs 50/kg?
Re: Re: Re: Re: Lot of useless blabber here
by om shanti on Mar 17, 2011 04:33 AM
Such money is kept in sacks among potato sacks in secret godowns and not in some nationalized bank..so,hoarders care a damn about bank interest rate,so weed out corruption from the country..RBI is searching for quick-fix solution as it is helpless at the apathy of corrupt governance...
Re: Lot of useless blabber here
by kapil on Mar 16, 2011 11:59 AM
always think practical... you are telling what you red some books written in year 1800-1900 time.... then why USA, UK, Japan and Europe never increased interest rate in recession time???
Re: Re: Lot of useless blabber here
by CBRCODER on Mar 16, 2011 12:10 PM
kapil you got it wrong. During Recession, interest rates are decreased. It's only at time of boom interest rates needs to be increased.
Re: Lot of useless blabber here
by anand van on Mar 19, 2011 02:15 PM
It has nothing to do with monetary economics,inflation is mainly due to governments inefficiency to deal with hoarding, betting and to create an alternate supply chain structure....
Re: Lot of useless blabber here
by asad hgjkf on Mar 16, 2011 10:09 PM
The problem with you is that u know only half the economics- the monetary part. Inflation in India CANNOT be controlled by monetary constraints, because it is not driven by excess money supply. Rather, inflation in India is primarily due to increasing cost of food items due to supply side constraints (or hoarding).
Re: How did NDA manage
by Rahul Ekbote on Mar 16, 2011 12:10 PM
never vote 2 G,CYG,CWG scamster,having black money in swiss or foriengbn banks,dont vote land,milk mafias,all agents in govt. offices ,vote anna hajare ji
You are wrong and your fellow workers also wrong... Who taught you inflation and interest rates are married??? you guys are going wrong way... if you want to test just reduce the price of Petrol and Diesel and see the changes...
Re: to Mr. KC Chakrabarthy
by Jayanth on Mar 16, 2011 11:24 AM
Inflation is lot of money chasing fewer goods. The way to control inflation is to reduce the monetary supply. One way to do that is to reduce bank credit lending. And the way to go about that is by increasing lending interest rates. Increase deposit rates and the like. So, yes these forces do affect each other
Re: Re: to Mr. KC Chakrabarthy
by asad hgjkf on Mar 17, 2011 12:20 AM
Dude, what about supply side of goods? Can you change the supply by reducing money in circulation? India has inflation due to supply constraints. And don't tell me that people should eat less.
