Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man.
stock market
As you might know, the Reserve Bank of India recently raised its overnight repo rate by 40 basis points from 4% to 4.40 % and cash reserve ratio by 50 basis points from 4% to 4.5% with immediate effect in an attempt to curb the money flow in the market and tame inflation for a short period of time. I say for a short period of time because of the concept of money neutrality, which states that changes in interest rates cannot affect the economy's real variable, but can only affect it for a short period of time and in the long run the real output in the economy will be the same.
Read full blog now: How RBI is Curbing Inflation
