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The Financial Express
Posted: Wednesday, Nov 04, 2009 at 0121 hrs IST
Updated: Wednesday, Nov 04, 2009 at 0121 hrs IST

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: Apropos the article ‘Trouble can be worse than bubble’ (FE, Nov 3, 2009), most of the measures taken so far to meet the financial crisis have been in the direction of increasing demand, which should have encouraged entrepreneurs to augment capacity through expansion and new projects. However, in the absence of any noticeable increase in new projects, the domestic and international money is chasing existing stocks, leading to a revival atmosphere. In the absence of substantial growth in capacity augmentation, higher inflation may become a reality.

P Esakki Muthu Mumbai

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