Saturday, June 16, 2012

Had seen news papers reporting stagflation of Indian economy by Moody's Analytics. First time, I was hearing the word Stagflation (off course, I am not a economist!!?!). The means, the economic growth or GDP is less or getting down, while inflation is still going strong.

 Hmm..., though not surprised, more than an year back had written a post about Indian economy 's GDP Vs Inflation compared to US and Chinese economy. In that post had mentioned that all may not be well even with higher GDP. 

 With GDP also decreasing now, reduction of interest rate could fuel inflation further. It could well be a double whammy for Indian economy.

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