inflation can be reduced by givin more and more subsidies for agricultural development and politicians should avoid converting agricultural land into industrial lands.. The reason for commoditty hike is due to very negligible production of commoditties in home country due to corruption in politics and no subsidies thus leadin for importing the basic commoditties and prices are hiked.. thus improving and periodic check on the allotments of Govt subsidies without fraudlement by politicians can reduce a inflation in country ...
The government should not give another chance for this trend of price rise to happen. It must take necessary precautions to anticipate the market requirements and should preserve articles to meet unprcedented demand.
There is so much talk about inflation these days.But before latching on any conclusions we must understand the basic reason behind inflation...i.e. more demand and insufficient supply.And more demand arises when people earn more...and it is not wrong to earn more!Is it?
So instead of using the technical ways i.e. raising interest rates,CRR hikes,and other credit control measures the govt. should concentrate on the supply side constraints and create policies to increase supplies so as to tackle the mismatch between growing demand and supply.....This is how inflation can actually be controlled in the long run.
Re: The Real way to tackle inflation
by Rahim Munshi on Jul 19, 2012 11:36 AM Permalink
Apart from removing supply side constraints the government should also try to control the current account and fiscal deficit which is leading to currency depreciation. The government should also try to commence stalled infrastructure projects and work on positive reforms to bring back the economy on track.
1,lower fuel prices by reducing tax on it.stop subsidies to unwanted sectors. 2.make people spend more by increasing income tax exemption to 3 lakhs. 3.give lower finance rates to people below 3lakhs income so as to build up consumption levels. 4. give minimum support prices to farmers for most agricultural produce. 5. develop mechanism wherein agricultural production is increased 6. agriculture production should be monitored and crop failure should be addressed at early stage by making a small village committee to monitor it and reported to a comittee chaired by state agricultural minister. i dont know what they are doing now-a-days? any other suggestions
People are lot worried abt inflation but they are indirectly contributing to it. One simple reason I analyzed is single person travelling in car, when he has the option of using public transport. if u take such people all over india, daily atleast 1lk people will be doing that mistake unknowingly thereby increasing the fuel consumption. if u take the best case of 1 litre perday , it means all over india 1 lk litres of petrol is being used .. unnecessarily, even though they have other options. it means more than 45 lk perday all over india, and 45 *30*12 for year. if people use some common sense they can atleast reduce 1 % of the consumption thereby reducing inflation atleast little.
RE:Tackling inflation indirectly
by Deepak on Jul 25, 2008 07:02 PM Permalink
it is a very good method to tell public and nearly most of the fuel is wasted because of red lights and people travelling in cars singally when they have good options.this should be controlled soon by imparting knowledge to the educated fools.
it's to fasten our belt, since we can not insulate our self from global economy. the collateral is inflation along with the 2nd highest GDP growth fig.s.but with time inflation will ease off , even govt. wants inflation , since it will pay off its debts when money becomes cheaper.but above a certain level inflation will wreck havoc for the economy.actually infaltion is better than deflation.to make best out of inflation is to borrow money!
