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Raghuram Rajan Uses 'Dosa Economics' To Explain Inflation
Raghuram Rajan Uses 'Dosa Economics' To Explain Inflation
Raghuram Rajan Uses 'Dosa Economics' To Explain Inflation
com/news/budget/article-raghuram-rajan-cites-dosa-economics-to-warn-about-inflation-1271561
Dr Rajan, who was delivering the C.D. Deshmukh lecture at National Council of Applied Economic
Research (NCAER) in New Delhi, reiterated the central bank's commitment to fighting inflation, saying
macroeconomic stability relies immensely on policy credibility.
Dr Rajan, who took charge at the RBI in September 2013, had initially raised rates aggressively to bring
down inflation which was at double digits. This helped inflation to come down to the current levels of 5.6
per cent.
"The fall in inflation is the joint work of the government and the RBI, aided to some extent by the fall in
international commodity prices. This is no mean achievement given two successive droughts that would
have, in the past, pushed inflation into double digits," Dr Rajan said.