I am a layman in this area, I always wonder how raising CRR controls inflation. The theory that is put forward is it absorbs cash from the system and hence people spend less to bring down the inflation.But my question is, I will spend less on groceries and etc. expenses that are in my hand but what about more EMI I have to pay to bank on housing loan ? isn't it like pay one way or the other but just they manage the figures to keep statistians happy ?
