Why should the government control inflation?
The ‘reform agenda’ understood as ‘market-oriented reform’ or giving more space to market mechanism in food and fuel economy seems to have been held up.
The government can not be seen to be doing away with subsidies just as prices are up. Its hand is stayed for now.
But is that enough for say the gross national happiness?
Food and fuel inflation has been in the news for a while.
The government has no short-term control over supply side issues causing price rise like a bad monsoon leading to a low harvest or floods, but it can control the rising demand by reining in liquidity.
It is guarded on doing so for fear of stifling growth.
Is that fair to the poor?
Less profit is not loss
The times they are a changin’, and indeed they have. For better or for worse, I am not sure, but what has changed is the way we look at making money from money.
Call it what you may — credit crisis, crisis of confidence, financial tsunami, meltdown — erosion of wealth is never good news. And rattled markets often lead to political turmoil and even shift in power.
So what is happening in the markets, economy, and banks; well, with anything to do with the art and science of making money?
Global markets have turned schizophrenic, banks are not lending and investor over-confidence has turned to no-confidence.
To some extent I agree with Roy’s logic that less profit is not loss as it is also well said that every single Penny saved makes a Pound and if you manage to save the Pound, that’s a big deal. So reisk averse people should try avoiding the security markets as it involves a great degree of a risk as unpredicted fundamentals may impare the value of their investments. So one should wisely invest as a Rupee saved is a Rupee earned and equity could be a diversified option for those who have hefty bank balances at their disposals and are prepared to bare losses.
from Money on the markets:
Less profit is not loss
The times they are a changin', and indeed they have. For better or for worse, I am not sure, but what has changed is the way we look at making money from money.
Call it what you may -- credit crisis, crisis of confidence, financial tsunami, meltdown -- erosion of wealth is never good news. And rattled markets often lead to political turmoil and even shift in power.
Enlightening.