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Story of Inflation: An orphaned child

Inflation is the orphaned child of money. It has not been adopted by anyone so far and lacks culture and etiquette needed to become part of civil society. It's parent, apparently money who conceived it in unreasonable ecstasy and joy, abandoned it to be a wife of power in the society. The orphaned child takes unchartered journey in highly underscored manner. Its journey intends to inflict injury to the civilised society that hated him very much since being conceived and equally on his mother who abandoned him. The wrath of inflation results in decline in his mother's value, namely, money.  However,  course of its actions and its trajectory hurts the poor and vulnerable unreasonably in comparison to rich and powerful who owns & comnands his mother. This period of wrath further results in landlord, bankers & lenders, fixed income earners loses while tenants, debtors and speculators stands to gain.  The policy makers try to a pacify the aggrieved and orphaned child but f
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Where is my job? Every economy is required to maintain the full employment level of resources but very often economies fail to achieve it. The most common reasons are policy lacunae from Government. But what is unheard off is that irrational choices is the number one reason to name.This seems ridiculous at first site because economists assume rationality to prevail everywhere. But just think off a bureaucrat who lacks formal training in economics but is always tasked with preparing the draft of Government's proposed legislation/policy framework on creating employment in economy. The bureaucrat's lack of knowledge often reflects in the policy lacunae that governments make. The first one is that bureaucrat does not believe in power of market to allocate resources, including human capital, to various sectors/activities in efficient way and rather has firm belief that government's bureaucratic mechanism is the most efficient one for such task. This irrational belief is re

Conditions necessary for Micro-credit to be a successful poverty reduction tool

 Poverty reduction remains a daunting task for policy makers’ world over. Out of quiver of many policies prescriptions available to policy makers is microcredit among the latest. However as it is noted by all the scholars worldwide that no single policy prescription is panacea  for reducing poverty and hence microcredit should be one of the policy prescription along with other in the poverty reduction programme.                 To make microcredit a successful poverty reduction tool we must use it simultaneously with other poverty reduction tools such as 1. Subsidised food grain distribution: Since poor people spend around 80 percent of their income on food and hence making available subsidised food grains will go a long way in increasing the purchasing power of the poor. This will further protect the poor from high market prices of food grains and will enable them to make prompt payment instalments to service their loans. 2. Skill development of poor people: Since poor peop

Should national governments introduce minimum wages or should they leave it up to the market to decide on wages?

I support Market to determine wage rates. Facts and reasoning for justifying my point are following. Minimum wage laws were invented in Australia and New Zealand for purpose of guaranteeing the minimum standard of living for unskilled workers. Minimum wage laws can set the minimum wages but can’t guarantee job. In practice they are often set for low skilled workers. (Gorman) . The International Labour Office in Geneva, Switzerland reports that some 90% of countries around the world have legislation supporting a minimum wage. The minimum wage in countries that rank within the lowest 20% of the pay scale is less than $2 per day, or about $57 per month. The minimum wage in the countries that represent the highest 20% of the pay scale is about $40 per day, or about $1,185 per month.  (Smith) . For USA, Minimum wage in 1968 was $1.60 per hour while it was $7.21 per hour on a 1996 constant dollar scale and minimum wage in 1996 was $4.75 per hour. This shows that rise in minimum wages

The Supermarket Revolution is a Two-Edged Sword

The SupermarketRevolution in Developing Countries Policies for “Competitiveness withInclusiveness ”, an article by Thomas Reardon and Ashok Gulati discusses the impact on each segment. 1. Supermarkets are having benefits of scale economies and low cost structure due to their business model which they pass on to consumers in the form of lower prices of goods for no change in quality. Given the fact that food products constitutes major share of sales in supermarket and are having inelastic supply as well as demand, lower prices for same/similar quality goods provides higher satisfaction and welfare to consumers. This also benefits economy in fighting inflationary tendencies. 2. For retailers in unorganized sectors, the authors say that the share of the unorganized retailers declines at different rates in different countries. From the point of view of an economy this is a good signal because with increasing formal sector in economy it becomes easy for government to regulate markets,
Dear readers As I have been requested by my juniors from various campuses of Karnataka that I should provide reading and practice material online to all for benefit of juniors. Hence I am providing link to get material online. Following is the link of my personal website on which I have uploaded the book. http://gouravkumarvani.co.in/

Why to look up to Food grains for Food Security? Lets look beyond Food Grains.

Often we see that economist and social scientist working on food security look up to food grains as the only source of food for humans. they often ignore the importance of non-vegetarian food as source of food. when most of humans in the world are non-vegetarian then ignoring non vegetarian source of food is a blunder while analyzing food security of a nation or region. Even I ignored  the importance of non vegetarian sources of food in my presentation on food security  http://www.slideshare.net/AgriGouravvani/food-security-in-india-myths-and-realities ,