Mehengaai or in economically sound language i should say "Inflation ", the word which alone is suffice to give goose bumps to bourgeois , as any alterations in the inflation levels badly affects the whole monthly budget of these proletarians, you must be wondering why am i giving so much emphasis on the working middle class, well, i am just talking here of the ground realities because they are the one's who are most badly affected when inflation levels surge, because for them a penny saved is a penny earned ,while the tier 1 and 2 societies who are quite well off ,are not that much affected.
In this hostile world where almost every corner is inflicted with one or the other problems like terrorism,contagious diseases, sky high debt levels pushing the countries into the abysmal recession , horrendous earthquake cum tsunamis etc the recent Arab spring was absolutely uncalled for.The middle east tensions which are worsening every day and there is no hope of this political turmoil coming to an end anytime soon , has raised the concerns over inflation as these tensions have disrupted oil supplies thereby leading to the surge in oil prices ,though india doesn't depend much on libya or other neighbouring countries but still , the ramifications on economy are quite palpable. Every second week government is heard anouncing the petrol/ diesel hikes by 2-3 rs.Crude prices alone are not concerns among the people but also the food inflation which has not come below 9% mark for over 2-3 months.
The government and central bank i.e RBI need to bring their synergies to tackle this problem.Although RBI has been trying to curb inflation levels for quite a long time by increasing the repo and reverse repo rates ,and government intervenes when supply side factors are concerned ,but the government and RBI needs to work in tandem and introduce some monetary instruments which they are able to refine when necessary.Realistic growth estimates and greater cohesion between the government and central bank are the key ingredients to keep inflation in control.
In this hostile world where almost every corner is inflicted with one or the other problems like terrorism,contagious diseases, sky high debt levels pushing the countries into the abysmal recession , horrendous earthquake cum tsunamis etc the recent Arab spring was absolutely uncalled for.The middle east tensions which are worsening every day and there is no hope of this political turmoil coming to an end anytime soon , has raised the concerns over inflation as these tensions have disrupted oil supplies thereby leading to the surge in oil prices ,though india doesn't depend much on libya or other neighbouring countries but still , the ramifications on economy are quite palpable. Every second week government is heard anouncing the petrol/ diesel hikes by 2-3 rs.Crude prices alone are not concerns among the people but also the food inflation which has not come below 9% mark for over 2-3 months.
The government and central bank i.e RBI need to bring their synergies to tackle this problem.Although RBI has been trying to curb inflation levels for quite a long time by increasing the repo and reverse repo rates ,and government intervenes when supply side factors are concerned ,but the government and RBI needs to work in tandem and introduce some monetary instruments which they are able to refine when necessary.Realistic growth estimates and greater cohesion between the government and central bank are the key ingredients to keep inflation in control.
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