{"id":2392,"date":"2013-11-13T09:07:13","date_gmt":"2013-11-13T03:37:13","guid":{"rendered":"http:\/\/teekhapan.wordpress.com\/?p=2392"},"modified":"2013-11-13T09:07:13","modified_gmt":"2013-11-13T03:37:13","slug":"inflation-over-10-india-needs-a-rajiv-gandhi-inflation-control-yojana","status":"publish","type":"post","link":"https:\/\/vivekkaul.com\/2013\/11\/13\/inflation-over-10-india-needs-a-rajiv-gandhi-inflation-control-yojana\/","title":{"rendered":"Inflation over 10%: India needs a Rajiv Gandhi Inflation Control Yojana"},"content":{"rendered":"

\"RAJIV_158869f\"<\/a>Vivek Kaul<\/span>
\n\u201c<\/span>But Ma I want to become an economist,\u201d said the son.
\n<\/span><\/span><\/span>\u201c<\/span><\/span><\/span>An economist?\u201d asked the mother. \u201cWhy in the world do you want to do that? You are already a politician.\u201d
\n\u201cAren’t they kind of cool?\u201d asked the son.
\n<\/span><\/span><\/span>\u201c<\/span><\/span><\/span>Care to explain?\u201d
\n\u201cLook at Rajan at the Reserve Bank, the women are just swooning over him,\u201d said the son. \u201cMrs De even wrote a column on how hot he is.\u201d
\n\u201cYes. But do you remember the one before Rajan? No woman would have fallen for him, even though he did try and learn the salsa dance,\u201d said the mother, puncturing the bubble.
\n<\/span><\/span><\/span>\u201c<\/span><\/span><\/span>Ah, trust you to spoil the fun as always,\u201d said the son. \u201cI was so looking forward to the women swooning over me.\u201d
\n\u201cAren’t they already,\u201d replied the mother, trying to do some damage control. \u201cLook at the number of responses we have got to that advertisement we placed on\u00a0<\/span><\/span><\/span>globalshadi.com<\/span><\/span><\/a><\/span><\/span>. Wanted a fair, convent educated, homely girl who respects her elders and can cook.\u201d
\n<\/span><\/span><\/span>\u201c<\/span><\/span><\/span>He He<\/i><\/span><\/span><\/span>.\u201d
\n\u201cBut why do you suddenly want to become an economist?\u201d
\n<\/span><\/span><\/span>\u201c<\/span><\/span><\/span>Oh, every other day the media talks about inflation, index of industrial production and what not,\u201d said the son. \u201cAnd I don’t understand any of it.\u201d
\n\u201cBut you don’t have to understand all that\u00a0<\/span><\/span><\/span>beta<\/i><\/span><\/span><\/span>,\u201d said the mother. \u201cWhat else do we have\u00a0<\/span><\/span><\/span>mauni baba\u00a0<\/i><\/span><\/span><\/span>for?\u201d
\n\u201cOh yeah,\u00a0<\/span><\/span><\/span>mauni baba\u00a0<\/i><\/span><\/span><\/span>is an economist, I had almost forgotten, given that he rarely speaks these days.\u201d
\n\u201cYes. Let me just call him for you.\u201d
\nFive minutes later,\u00a0<\/span><\/span><\/span>mauni baba\u00a0<\/i><\/span><\/span><\/span>is hurried in through the door.
\n<\/span><\/span><\/span>\u201c<\/span><\/span><\/span>What happened madam?\u201d he asked. \u201cHope all is well.\u201d
\n\u201cNothing really,\u201d she replied. \u201cMy son here just had a few small doubts. I’ll leave the two of you alone to have a man to man talk.\u201d
\nSaying this, the mother left the room and the son decided to brush up on his economics.
\n\u201cYou know sir, the index of industrial production(IIP) number came in earlier in the day and it rose by 2%.\u201d
\n\u201cYes, it did\u00a0<\/span><\/span><\/span>beta<\/i><\/span><\/span><\/span>. What do you want to know about it?\u201d asked\u00a0<\/span><\/span><\/span>mauni baba\u00a0<\/i><\/span><\/span><\/span>rather lovingly.
\n\u201cWhy is the number so low?\u201d
\n\u201cWe are going through tough times. You know the IIP essentially measures the level of the industrial activity in the country.\u201d
\n\u201cBut isn’t 2% very low?\u201d
\n\u201cYes it is. In fact, if we look at just manufacturing which forms 75% of the IIP, it grew by only 0.6%.\u201d
\n\u201cOh, so low?\u201d
\n\u201cYes,\u201d said\u00a0<\/span><\/span><\/span>mauni baba. \u201c<\/i><\/span><\/span><\/span>The industrial activity in the country has come to a standstill.\u201d
\n\u201cBut why is that?\u201d asked the son.
\n<\/span><\/span><\/span>\u201c<\/span><\/span><\/span>People are not buying as many cars as they were. Neither are they buying consumer durables, which fell by 10% during September 2013, in comparison to the same period last year,\u201d said\u00a0<\/span><\/span><\/span>mauni baba<\/i><\/span><\/span><\/span>, without answering the question.
\n\u201cBut what is the problem?\u201d
\n\u201cThe problem is inflation. The consumer price inflation for the month of October 2013 was at 10.09%.\u201d
\n\u201cOh, yes I saw that on television,\u201d said the son. \u201cThey keep going on and on about onion and tomato prices going up. I am so bored of watching that.\u201d
\n\u201cYes, you should watch Star World Premiere HD.\u201d
\n\u201cAnd if they can’t eat onions and tomatoes, why don’t they try pasta and pizza,\u201d said the son. \u201cOr even caviar.\u201d
\n\u201cDoesn’t go down well with the Indian taste, you know,\u201d said\u00a0<\/span><\/span><\/span>mauni baba. \u201c<\/i><\/span><\/span><\/span>We need our dal, rice and rasam.\u201d
\n<\/span><\/span><\/span>\u201c<\/span><\/span><\/span>So you were telling me something about inflation.\u201d
\n\u201cYes. So inflation is greater than 10%. Food inflation is higher. Consumer price inflation number suggests that food inflation is at 12.56%. As per the wholesale price inflation number, the food inflation is at 18.4%.\u201d
\n\u201cAnd what does that mean?\u201d
\n\u201cHalf of the expenditure of an average Indian household goes towards food. Given the rate at which food prices are rising, more and more money is being spent on paying for food and other essentials.\u201d
\n\u201cOh.\u201d
\n\u201cHence, there is very little money left to buy non essential items like consumer durables and cars. And this leads to low industrial activity. When the demand falls, so does the supply.\u201d
\n\u201cBut where does this inflation come from?\u201d asked the son. \u201cWhy can’t we just stop it by launching a RGICLY?\u201d
\n\u201cRGICLY?\u201d asked\u00a0<\/span><\/span><\/span>mauni baba.<\/i><\/span><\/span><\/span>\u00a0\u201c<\/span><\/span><\/span>What is that?\u201d
\n\u201cRajiv Gandhi Inflation Control Yojana,\u201d explained the son, very seriously.
\n\u201cWe can try, we can try,\u201d said\u00a0<\/span><\/span><\/span>mauni baba\u00a0<\/i><\/span><\/span><\/span>going with the flow.
\n\u201cBut where does this inflation come from?\u201d
\n<\/span><\/span><\/span>\u201c<\/span><\/span><\/span>Well, over the last few years, the government has increased its expenditure. All this money being spent lands up in the hands of people. And they go out and spend that money. When a greater amount of money chases the same amount of goods and services, prices rise. Food prices particularly work along these lines.\u201d
\n\u201cAh. So basically we need to grow more onions and tomatoes.\u201d
\n\u201cYes, yes,\u201d said\u00a0<\/span><\/span><\/span>mauni baba.\u00a0<\/i><\/span><\/span><\/span>\u201c<\/span><\/span><\/span>Its an opportune time to launch IGKTUY.\u201d
\n\u201cIGKTUY?\u201d asked, the confused son. \u201cWhat is that?\u201d
\n\u201cIndira Gandhi Kaandha Tamatar Ugaao Yojana.\u201d
\n\u201cKaandha why not just Pyaaz or Pyaaj?\u201d asked the son. \u201cNo one understands Kaandha in North India.\u201d
\n\u201cOh, I just though IGK comes in a sequence and thus, sounds better,\u201d\u00a0<\/span><\/span><\/span>mauni baba\u00a0<\/i><\/span><\/span><\/span>explained.
\n\u201cIGK or IJK?\u201d asked the son.
\n\u201cOh, never mind.\u201d
\n\u201cBut now I get it. Basically inflation is killing growth,\u201d said the son.
\n\u201cYes, in fact there is even a term for it.\u201d
\n\u201cAnd what is that?\u201d
\n\u201cStagflation, which is a combination of stagnation and inflation.\u201d
\n\u201cAh, stagflation,\u201d said the son. \u201cI quite like the term. Reminds me of all the stag parties I used to attend.\u201d
\n\u201cSo can I go now?\u201d asked\u00a0<\/span><\/span><\/span>mauni baba.
\n<\/i><\/span><\/span><\/span>\u201c<\/span><\/span><\/span>Wait, wait, wait,\u201d said the son. \u201cI just understood what you were really trying to say.\u201d
\n\u201cWhat?\u201d
\n\u201cThat, mother is essentially responsible for everything. She was the one who got the government to increase its expenditure and spend much more than it earned, which is what finally led to inflation.\u201d
\n\u201cBut I didn’t say that,\u201d\u00a0<\/span><\/span><\/span>mauni baba\u00a0<\/i><\/span><\/span><\/span>protested.
\n<\/span><\/span><\/span>\u201c<\/span><\/span><\/span>You did not. But that was what you meant,\u201d said a confident son. \u201cMother won’t like listening to this.\u201d
\n\u201cAh. You are making the same mistake as other people.\u201d
\n\u201cWhat?\u201d
\n\u201cThey don’t call me\u00a0<\/span><\/span><\/span>mauni baba\u00a0<\/i><\/span><\/span><\/span>just for nothing,\u201d said\u00a0<\/span><\/span><\/span>mauni baba\u00a0<\/i><\/span><\/span><\/span>and walked out confidently from the room.
\nThe mother soon came back into the room and the son told her everything. As he finished, the mother burst out into a hearty laugh.
\n<\/span><\/span><\/span>\u201c<\/span><\/span><\/span>You know, this is quite unbelievable,\u201d she said. \u201cYou want me to believe that for the last half an hour\u00a0<\/span><\/span><\/span>mauni baba\u00a0<\/i><\/span><\/span><\/span>was speaking and you were listening?\u201d
\nThe article originally appeared on www.firstpost.com<\/a> on November 13, 2013
\n<\/span><\/span><\/span>(Vivek Kaul is a writer. He tweets @kaul_vivek)<\/b><\/i><\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Vivek Kaul \u201cBut Ma I want to become an economist,\u201d said the son. \u201cAn economist?\u201d asked the mother. \u201cWhy in the world do you want to do that? You are already a politician.\u201d \u201cAren’t they kind of cool?\u201d asked the son. \u201cCare to explain?\u201d \u201cLook at Rajan at the Reserve Bank, the women are just … <\/p>\n

Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"qubely_global_settings":"","qubely_interactions":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2,31,33,39,68],"tags":[785,825,1651,1691,3445],"qubely_featured_image_url":null,"qubely_author":{"display_name":"Vivek Kaul","author_link":"https:\/\/vivekkaul.com\/author\/vivekkaul\/"},"qubely_comment":0,"qubely_category":"Analysis<\/a> Financial Crisis<\/a> Firstpost<\/a> Humor<\/a> Satire<\/a>","qubely_excerpt":"Vivek Kaul \u201cBut Ma I want to become an economist,\u201d said the son. \u201cAn economist?\u201d asked the mother. \u201cWhy in the world do you want to do that? You are already a politician.\u201d \u201cAren’t they kind of cool?\u201d asked the son. \u201cCare to explain?\u201d \u201cLook at Rajan at the Reserve Bank, the women are just…","jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/vivekkaul.com\/wp-json\/wp\/v2\/posts\/2392"}],"collection":[{"href":"https:\/\/vivekkaul.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vivekkaul.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vivekkaul.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/vivekkaul.com\/wp-json\/wp\/v2\/comments?post=2392"}],"version-history":[{"count":0,"href":"https:\/\/vivekkaul.com\/wp-json\/wp\/v2\/posts\/2392\/revisions"}],"wp:attachment":[{"href":"https:\/\/vivekkaul.com\/wp-json\/wp\/v2\/media?parent=2392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vivekkaul.com\/wp-json\/wp\/v2\/categories?post=2392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vivekkaul.com\/wp-json\/wp\/v2\/tags?post=2392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}