02-28-2007, 05:30 AM
<!--QuoteBegin-rajesh_g+Feb 28 2007, 01:03 AM-->QUOTE(rajesh_g @ Feb 28 2007, 01:03 AM)<!--QuoteEBegin-->As aam-aadmi all i will say is sure it is supply-side but i think it might be because of money-supply and I do think that GoI has to acknowledge the problem and face it head-on.
http://www.rediff.com/money/2007/feb/27bud10.htm
<!--QuoteBegin--><div class='quotetop'>QUOTE<!--QuoteEBegin-->It squarely blamed the supply side shortages for the inflationary pressures, for which there were no immediate solutions, and said: "Poor agriculture performance, as the current year has demonstrated, can complicate maintenance of price stability with supply side problems in essential commodities of day to day consumption."<!--QuoteEnd--><!--QuoteEEnd-->
[right][snapback]65061[/snapback][/right]
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Not easy to face the problem head on. A squeeze of the money supply may also trigger a recession which will be like jumping from the frying pan to fire.
http://www.rediff.com/money/2007/feb/27bud10.htm
<!--QuoteBegin--><div class='quotetop'>QUOTE<!--QuoteEBegin-->It squarely blamed the supply side shortages for the inflationary pressures, for which there were no immediate solutions, and said: "Poor agriculture performance, as the current year has demonstrated, can complicate maintenance of price stability with supply side problems in essential commodities of day to day consumption."<!--QuoteEnd--><!--QuoteEEnd-->
[right][snapback]65061[/snapback][/right]
<!--QuoteEnd--></div><!--QuoteEEnd-->
Not easy to face the problem head on. A squeeze of the money supply may also trigger a recession which will be like jumping from the frying pan to fire.