In a classic case of a textbook approach, we keep fighting inflation by increasing interest rates. The efficacy of such a strategy, however, is lost beyond a point. Rising interest rates makes us a stagnant economy and lowers GDP growth.
Even as we are busy fighting inflation and consider it a big threat, employment generation is a bigger battle. A trade-off is now due between inflation and growth and employment. The bigger crisis before the country is lack of jobs and skilled labour. Will someone address it?
R Narayanan, Ghaziabad
