Fearful Symmetry sees India fighting stagflation

Chidambaram’s remarks upon re–assuming the role noted that while India’s obvious objective is high growth and moderate inflation, it is currently experiencing the reverse. (The piquant whiff of stagflation emanating from the subcontinent has been one of the many
impediments thrown in front of the rupee this year.) He then argued that India has some relatively recent experience from the early 1990s to draw on in dealing with the present situation. His to–do list covers fiscal consolidation; getting on top of inflation without sacrificing growth by attempting to skew activity towards supply side expansion; and reform of the tax and foreign investment framework.

Er 20120904 Fearful Symmetry