Inflation and The Risks of Freebie Politics

The economic turmoil is the melding of the cause and consequence of rising inflation. Political impulse and urges carry a price. While India is better placed it is scarcely immune to global slowdown. The spectre signals the need to curb competitive populism.

The crux is the melding of the cause and consequence of rising inflation. Developed countries are pumping more and more money to protect their people from rising costs, even as the central banks try to draw out excess money to bring down inflation. As interest rates rise, the balance is tougher to negotiate. The cauldron of competing crises is occupying global attention and has dominated debate at the annual IMF and the World Bank meetings in Washington.

Stability rests on effective management of debt to enable growth. The rise of freebie politics — promises of unquantified, unallocated expenditures for securing votes — threatens the fragile state of India’s balance sheet. It is imperative for the political class to recognize the price India may end up paying for their profligacy.

Related posts:

Who cares about small wins? Not many of us. Small Wins, at one point, was recognized as the path to success. However, these days, if you are not spewing the greatness of earning a 6-figure income, no…

tldr; staying in control of your IAM model is hard, especially when it evolves over time. That is why we built and open sourced Mia. It helps you visualize, explore and query your AWS IAM and…

Gone are the days when making your own clothes was reserved for former nuns in The Sound Of Music and the Shreddies nanas. After the rise of fast fashion in the late 20th century — and the more…