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Inflation is proving hard to tame as central banks lose sight of their primary role of inflation-targeting
Greece's problems were inevitable because the concept of Eurozone is based on flawed solidarity. While the monetary policy is controlled by the ECB, the fiscal policy is under the member states. They have to obey the diktat of the ECB regarding interest rates and this has made Greece uncompetitive with rising costs.
India’s target of achieving 175 GW of renewable energy capacity by 2022 might appear ambitious, but it is crucial as it will have a positive impact on the country’s economic growth, energy security and the fight against climate change. Financing is emerging as the key challenge to this vision, slowing down the pace of growth; as of December 2019, over 50 percent of the 2022 target is yet to be achieved. This brief outlines India’s existing
India should refrain from mimicking the rest of the world by increasing interest rates too quickly as it would directly impact the post-pandemic recov
India is experiencing the fastest increase in prices among the big emerging market countries. The Reserve Bank raised interest rates 10 times since March 2010 to control inflation, and its adverse impact on the demand for goods and services, investment and corporate profits is already visible.
Fiscal policy must be leveraged to contain the impact of rising interest rates on growth.
How far inflation control will be successful, only time can tell and we have to wait and watch. Inflation is very bad especially for the poor. But inflation cannot be controlled by interest rates alone. By being overly hawkish, the RBI Governor is not going to help industry which is starved of investment.
