Despite desperate monetary tightening by the RBI, inflation has again risen to 11.45%. The government blames the international situation of food shortage and record oil prices for this mess. But how far is this true?
We need to go back in time to see when India last had a double digit inflation. It was in 1995. This is significant because that was the 4th year, the Congress government led by Narasimha Rao was in power. And guess who was the Finance Minister? A Dr.Manmohan Singh. And now, in the 4th year of the current government, headed by the same gentleman, we are again burdened with a double digit inflation.
The inflation touching double digit in the 4th year of governance is very symbolic. This is because the real impact of the monetary policies of a new government is felt only in the 4th and 5th year of Governance as macro economic policy initiatives takes about 2-3 years to really bear fruit (if that is the right word if one is destroying the economy).
So, we need to ask these questions. Is Dr.Manmohan Singh's economic policies an unmitigated disaster? Is he a failed economist? Is his economic management skills overhyped? Is he a one dimensional thinker, not being able to adapt?. I guess so, for the neo liberalization policies he has initiated has produced double digit inflation crippling the common man twice in a span of a decade and a half. It cannot be a coincidence.
It is a sad day when our leaders can't find a solution to such a critical economic problem which affects every single indian.
