Friday, February 19, 2010

The Great Indian - Ostrich??

An article from today's Economic Times on India's fiscal and monetary management. Please click on the title of this post which links to the article.

While the Great Indian Bustard has been poached and other wise squeezed out to the point where it's nearly extinct, we should all be concerned by the reluctance of our Central bank and Finance Ministry to wake up and smell the coffee. Yes, food price inflation is a problem but that is in this case secondary to our keenness to attribute inflation to "supply side" issues and to therefore avoid taking pro-active measures to cool an economy which could otherwise overheat. The irresponsibility of our business leaders and the media in not recognising the perils of this is also disappointing.

We should be most concerned if this risky approach is being adopted to "manage" financial markets so that conditions are conducive to the success of large scale Government disinvestment programme that is now underway.

In all our interests, request some restraint and responsible conduct from those who should know better!

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