There will be no problem between the policies of Narendra Modi and Dr. Raghuram Rajan. Udner Modi, there will be more manufactured goods, more money in circulation, and lower prices of goods (due to greater production and competition). There will be more revenues through taxes. We anticipate an annual ten percent growth in the economy. Hence, Dr. Rajan will not have any majr problems in controlling inflation through monetary policies associated with interest rates. Another convenient aspect in the Indian economy is that the financial sector is dominated by public banks with high integrity. Private or foreign banks are more difficult to be controlled by legislation, and they have the luxury of over-paying their executives. Public banks have higher degrees of state observability and state controllability.
I do not know how much Americans are influencing using interest rate or climate change etc to scuttle the growth. India needs growth first and inflation control next only to growth. We are not so bad about inflation. Rajan has to reduce interest rate and be an agent of growth or step down and go. We do not need any big Economists to stagnate our life.PM Modi knows it well.
Re: Growth first and inflation second
by Rajendra Kute on Jun 02, 2014 09:41 PM
Rajan hinself is the biggest tool America is using to spoil Indian economy along with climate change, proxy institutions like Carnegie Mellon & media agents like CNN. We do not need any big Economists to spoil our life.PM Modi knows it well & should act accordingly.
