If the govt over-reacted, I am happy it did! Inflation of 7-8 % is high enough for the common man.. But the cascading effect of this inflation by banks and other monetary organisations make the real effects of inflation to go about 4 percentage points higher than indicated..
The govt. reacted in the best possible way. It should have acted before a stimulus was needed, for it to react..
RE:Over react!??
by Sreekanth Nemani on May 27, 2008 02:36 PM Permalink
Actually, food prices have gone up by 20-30%. So, if you are actually looking at things relevant to common man, then that is a true index.
And how can you say what is important and what is not? Everything has an indirect effect! (and don't worry things like IPL are not considered)...
