Arrest The Inflation

Surveying the markets ,is one of my frontier occupation.
The three months of 2010 has seen a vibrant spurt in the price index.
Consumer goods ,right from onions to rice have risen to unpredictable levels.
Construction materials from sand to steel have crossed the imaginable realisation.
Commodities like oil to gold have been hijacked.
Labour costs have reached the limits.
It is expense  at the risk of saving.
However much you earn , in four digits or five digits ,the end of the day you are empty handed..
Irrespective of the revenue consumerism has made a rapid foray ,leaving the bread winner in tatters.



Coming to the essentials, we have to control inflation.
Right! This is an unanimous alibi
How to imprison this ebbing challenge?


By adjusting currencies is a prominent way out.
Powerful should download some of its inhibitions against the weak ones,.
Juxtaposition  of strong  with mild.
This has to be done ,that too in an emergency level.


By hiking interest rates is a secondary move.
The flowing liquidity or can we term it as surplus liquidity  has to be withdrawn..
As liquidity tightens ,spending will  be fastened  fiercely resulting in less purchase.
As the necessity dwindles , there would be an excess of products, in the market leading to a fall in prices.
Inflation gets halted.
This theory sounds far fetched and less pragmatic.
It invites suspicion and apprehension.



The black economy has also to be taken care off.
High taxes direct one to conceal income, manipulate the turn over, and confirm a second method of accounting which never comes to light.
Unless the tax get subdued and subsidised, the rising inflation will not recoil.
This is the sure proposal to control inflation .
The goverments have to view this substantial merit before anchoring any other measure.