For much of the last year, central bankers, industrial leaders and politicians have been warning us about deflation. Falling prices, they tell us, will create another 1930s-style depression. The only answer is to print money furiously. (more…)
Don’t be fooled by the US Labor Department released Consumer Price Index as the government has a huge vested interest in suppressing real inflation rates…as Social Security Benefits increases, Government Budgets,…among others are pegged to this. So the last place you would expect to get real inflation rates is from the US Labor Department. (more…)
India’s inflation hit 11.05% in the first week of Jun 2008 hitting a 13 year high. Investors specially foreign investors have lost confidence in the abilities of RBI governor and the government as a whole to contain inflation. This loss of confidence is marked by them fleeing the market as they are hit by the twin whammy of falling stock markets and a depreciating Indian Rupee further eroding their dollars assets. (more…)
But then how reliable are World Bank forecasts.. not very. Check out this article about how bad World Bank has been in its forecasts and further down how bad IMF has been with its forecasts. The reason for these wrong forecasts is probably because a IMF or World Bank (possibly) forecast is usually before or after a policy decision made by them so to justify their policy decision forecasts are made. Objectivity required for accurate forecasting gets lost when these bodies have their hidden axe to grind (more…)
India’s central bank is expected to adopt further measures to slow accelerating inflation in the wake of fule-price rises, a move that could crimp growth in the world’s second fastest growing major economy. (more…)
Will this be enough to cool the inflation in India?…we will have to wait and watch.
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