I think all commodity trading should be banned. Interest rates should be raised to fight inflation. All chidambaram cares is his legacy of consistent 8% growth.
RE:NRI's need daal too
by Newswatch on Apr 01, 2008 08:11 AM Permalink
Marginal increase in Interest rates might help to withdraw some money from circulation, but they have the unhealthy effect of increase the cost of funds and add to the increase in cost of production . This increase in costis generally passed on to the consumer. Increase in interest rates should be concomittant with increase in SLR and CRR for banks to cut money supply among the slew of other measures that are required.
