To tame runaway inflation, India needs political solutions, not just monetary tightening

RBI governor Raghuram Rajan cannot bring inflation down. Only politics can. The sooner politicians, policymakers and analysts realise this, the sooner we will have realistic solutions. Inflation has three different drivers. One is the large fiscal deficit, which creates demand for goods and services in excess of the supply. Another is steady increase in fuel prices as part of a programme of gradual decontrol in a context of volatile global energy prices and a weak rupee. 

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