Finmin: fiscal options to fight inflation are limited

Economy Bureau
Posted: 2008-08-09 01:22:49+05:30 IST
Updated: Aug 09, 2008 at 0122 hrs IST

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Inflation still a matter of concern: RBI Inflation still a matter of concern: RBI Inflation to fall further in two months, says PM Inflation downtrend to continue: Nath

as compared to global inflation rates has been largely due to various measures taken by the government to address supply-side concerns, as well as suitable demand moderation,” the ministry said....

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» Fiscal measures to fight inflation

Posted by K.K.Ammannaya on 2008-08-09 21:48:03.235444+05:30
I agree that fiscal options to fight inflation are limited.Monetary tightening will also have adverse effects and rate hikes and continued dear money policy will affect growth in general and inclusive growth in particular.Only way to fight inflation is to create a situation of abundance,a situation of plentiful supplies of all goods-both food and non-food by means of cheap money policy and appropriate fiscal measures.Inflation must be controlled and curbed by means of application of selective credit controls .

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Finmin: fiscal options to fight inflation are limited

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