At times i feel that our country is being managed by a finance manager and not a PM. The entire focus is on certain numbers - GDP, inflation , interest rates , etc.
They are trying to tame inflation by increasing policy rates. What they are doing is theoritically correct ? But inflation is not just about easy availability of money.
Just try and explain to a lay man that his vegetable and fruits , food items, fuel , etc will become cheaper if the interest rates on loans are increased. Anybody will say that this is non sense.
Inflation here is not because there is easy availability of money. But inflation is because of low supply of food items, high cost of basic commodities especially fuel which has a bearing on all other commodities.
Will the PM explain how diesel , petrol, kerosene and LPG become cheaper by increasing the policy rates ? Can he explain how vegetable prices can be reduced by increasing policy rates ?
We need a leader to run the country. Not a finance manager.
A small company will also have a seperate guy to run the business (CEO) and a seperate guy to manage finances (CFO, Fin manager, etc).
India should also have the same structure, if not better.
