Combining growth with a curb on inflation should be the primary aim of the economist , The chinese has exemplefied that growth without inflation is possible .
This 7 Billion $ can seriously impact the inflation , as indian business is already borrowing billions of dollar from over seas market as if there is no tomorrow , this coupled with the forex 7 billion $ will increase the buying power and will create yet another supply side inflation scenario which affects only the poor and needy . The cash flow has to be managed in a such a fashion so that there is no burn out of Indian Economy .
The economy is already facing inflation challenge when Indian inflation is around 6 % when Globally inflation is quite low . Its a very tricky issue and has to handled with great care . I hope the indian politicians headed by Manmohan Singh will take the correct decision .
RE:The Inflation Issue !
by bharat Maheshwari on Apr 16, 2007 07:05 PM Permalink
dude, let it happen, money lying with RBI is a dead investment, if this money is used for productive use ratehr then financening usa consumers, indian will be better off
RE:The Inflation Issue !
by ASHOK on Apr 16, 2007 07:25 PM Permalink
Please Be aware, most of it might be a paper in the hand of RBI, But as liquid money most of it is being circulated in US economy. Mute point is, we have to circulate and multiply it on over own soil.
