Subbarao: a hawk flying solo against inflation

In 2010 and 2011 the rate increases were done inspite of the then FM and his advisor being against it. At that time it was reported that PC who was not in good terms with Pranabda had been insisting on Subbarao to increase the rates. PC in his capacity as Rao’s exboss and who granted him the extension could have managed it to the detriment of the economy. This regresive step was taken inspite of the popular belief that inflation was more due to the corruption in the system,causing huge leakages of good money into the grey area, ordhestrated by the ruling clique. Now it looks that Rao has started defying the FM since he wants to regain his lost image. He has rightly refused to lower the rates, since he knows that fiscal measures PC is talking of are difficult to implement and they are only populist announcements to fool the public.

Inflation is govt circulated fake currency