A Quote by Urjit Patel
We have been mandated by the government, backed by legislation, that we have to have an inflation target of about 4%.
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Yes, 4% is the government-mandated target to the MPC. The plus/minus 2 percentage-point upper and lower bands are the tolerance levels specified by the government. If we breach those for three consecutive quarters, we need to inform the government of why that happened and what we propose to do to bring inflation within the two bands.
The only way to ensure that inflation expectations remain safely anchored near the FOMC's target is to keep inflation close to that target on a consistent basis.
To me, a wise and humane policy is occasionally to let inflation rise even when inflation is running above target.
We will not play with inflation. We are living a delicate moment. President Obama spoke to me today about the high unemployment affecting the United States. In this crisis period, when the developed nations are not recovering, it's prudent to maintain the established inflation target.
Perhaps the most important reason to be skeptical of government inflation numbers is that the government, like a fox campaigning to guard a hen house, has many reasons to be disingenuous. As the world's largest debtor, the Federal Government is inflation's primary beneficiary.
When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident.
The important distinction so well understood in America between a constitution established by the people, and unalterable by the government; and a law established by the government, and alterable by the government, seems to have been little understood and less observed in any other country. Wherever the supreme power of legislation has resided, has been supposed to reside also, a full power to change the form of government.
Why should a city be mandated to do something by the federal government or state government without the money to do it?
RTE was set up by legislation as an instrument of public policy, and, as such is responsible to the government. The government have overall responsibility for its conduct, and especially the obligation to ensure that its programmes do not offend against the public interest or conflict with national policy as defined in legislation. To this extent the government rejected the view that RTE should be, either generally or in regard to its current affairs programmes, completely independent of government supervision.
The government will always tell you that it wants low inflation. The real issue is the horizon over which to bring inflation down.
Inflation is taxation without legislation.
The reason I am so negative about the Federal Reserve's policies is that they only target core inflation and argue that they can't identify bubbles, but when each bubble bursts, they flood the system with liquidity that brings about unintended consequences.
Inflation is the one form of taxation that can be imposed without legislation.
I think democracies are prone to inflation because politicians will naturally spend [excessively] - they have the power to print money and will use money to get votes. If you look at inflation under the Roman Empire, with absolute rulers, they had much greater inflation, so we don't set the record. It happens over the long-term under any form of government.
Because food and energy prices are volatile, it is often helpful to look at inflation excluding those two categories - known as core inflation - which is typically a better indicator of future overall inflation than recent readings of headline inflation.
I have spoken about inflation, unemployment, farmers' problems, security, etc. I keep talking about these issues. I seek answers from the Indian government.
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