Anatomy of inflation (Part-II)

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Article

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What are the possible remedial measures to subdue inflationary pressures in the economy? None of them is a quick fix or short-termish but requires patient and consistent action immediately to produce results in the medium and long term.

It is quite understandable that political compulsions necessitate attention to be focused on short-term problems, but the downside is that the essential long-term policy decisions are neglected. Urgent takes precedence over important. The main thrust for combating inflation has to be expansion of domestic productive capacity and keeping it aligned with growth in aggregate demand. Productivity levels in both farm and non-farm sectors are stagnating and low compared to our neighbouring countries and have to be raised. The means to do so are well known and have been spelled out ad-nauseum. We outline below some of the measures that would help subdue the inflationary pressures but – and let me stress this --not right away.

Publication Source

The News

Publication Date

11-5-2021

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