The ‘ghost’ of inflation that has constantly haunted the Indian economic development has once again taken shape. This is mainly due to the lack of empirical models to help management agencies to solve the problem at its roots.
“Monetary policy becomes the first line of defense, so if inflation persists for a long time, people think inflation is going to be high, and that becomes a self-fulfilling prophecy,” D. Subbarao said few days ago at a conference in Bhubaneswar.
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