Search: Look for:   Last 1 Month   Last 6 Months   All time

Sacrifice growth to scale down inflation, says Governor Subbarao

Patna, Sat, 18 Feb 2012 ANI

Patna, Feb 18 (ANI): Reserve Bank of India (RBI) Governor D. Subbarao has said that a bit of growth needs to be sacrificed temporarily in order to bring inflation down.


"What I want to give is a message and that is that there is no way we can bring inflation down without sacrificing some growth. People talk about it in textbook economics. You have to sacrifice a bit of growth in order to bring inflation down but that scarifies needs to be short term," Subbarao told the media here on Friday.


"We scarifice in the short term, so that our medium cum growth becomes more sustainable. If there is high inflation, there will uncertainty for investments, there will uncertainty for consumers and high inflation scenario in not a use of growth," he added.


Subbarao further said inflation is anemic for growth.


"It is true that in economic literature, there is a concept of trading of between growth onsultations but that happens below a threshold level of inflation. At below a certain level of inflation, you can trade a bit of inflation to get a high level of growth but above a threshold level of inflation, inflation is anemic at growth," said Subbarao.


"For much of 2010, for all of 2011, we had inflation in the range of 9 to 10 percent, which is way above the threshold level and we had to act very aggressively and decisively on the monetary policy side to bring inflation down," he added.


Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. (ANI)


Manohar Lal being presented with a memento
Manoj Tiwari BJP Relief meets the family members of late Ankit Sharma
Haryana CM Manohar Lal congratulate former Deputy PM Lal Krishna Advani on his 92nd birthday
King of Bhutan, the Bhutan Queen and Crown Prince meeting the PM Modi
PM Narendra Modi welcomes the King of Bhutan
Post comments:
Your Name (*) :
Your Email :
Your Phone :
Your Comment (*):
  Reload Image




Excellent Hair Fall Treatment
Careers | Privacy Policy | Feedback | About Us | Contact Us | | Latest News
Copyright © 2015 NEWS TRACK India All rights reserved.