Comments by "Arun Sar" (@arunsar7893) on "When RBI rudely surprises markets u0026 why inflation is spooking the world" video.

The inflation that India currently experiencing is due to supply-side shock though. That is something that can't be controlled by rate hikes.
15
@orkkojit In India, Food is the primary component of price index measurement. You think price of wheat, cooking oil, palm oil etc is up because of excess liquidity in the bond markets?? .. Petrol prices might also be up, not because a larger supplier of crude oil has been plugged out the market due to sanctions but because there is excess liquidity.
6
Not really. Cause the producers of these products won't be able to increase prices and pass it on to consumers immediately. That will take time and until them means they will go through a painful period. They make profits when inflation goes down i.e. the input cost goes down and that is when they make money.
1
@orkkojit Ok.
1
@orkkojit "When there is excess liquidity, more people have more money. Demand goes up supply remains constant. It's simple economics." - I don't deny that. Can you say what simple economics says what happens when demand is constant but supply goes down??
1