Why Doesn't IMF Talk About Price Control Instead of Raising Interest Rates to Control Inflation?
The International Monetary Fund (IMF) publishes two reports a year under the name 'World Economic Outlook'. Recently another report has been published. It has been claimed in this report that the coming times are going to prove to be dangerous for the world economy. In most countries of the world including India, recession is going to come due to inflation. The way to avoid this is that the Central banks should increase interest rates, reduce the subsidy given by the Central government. On this issue, senior economic journalist Aunindyo Chakravarty gives his view in this video. He asks: how poor people and small businessmen will be affected the most by raising the interest rate? Raising interest rates is of no use in controlling inflation. Inflation will be controlled only when the policies of price control are made. Prior to the year 1990, the policies of price control were adopted to control inflation. But since neoliberal policies have been implemented all over the world, the policies of price control are not adopted to control inflation.
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