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Let us abandon WPI

Two items on inflation have appeared in the news today.  First, there is a CRISIL study, computing how much extra households have had to pay in the last three years because of inflation.  And speaking...

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Fiscal slippage

The government will borrow Rs 52,900 crores in 2011-12. This will be almost 13% higher than what was budgeted. On the face of it, this is because of a shortfall in small savings. Why has there been a...

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Do you believe the fiscal consolidation plan?

"If government has to walk alone to face the challenge of growth, well we will walk alone."  That was the Finance Minister, upset that RBI hasn’t cut policy rates.  Reportedly, Deputy Chairman of...

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Not at this Rate…

   If the markets expected the Reserve Bank of India (RBI) to cut policy rates, then the markets were irrational. There are two reasons why May’s wholesale price index (WPI)-based inflation of 4.87 per...

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