SUGGESTION TO PMEAC CHAIRMAN DR C. RANGARAJAN

SUGGESTION TO PMEAC CHAIRMAN DR C. RANGARAJAN

To: The Honorable Prime Minister Economic Advisory Council Chairman

Dr. C. Rangarajan.

From: Athinarayanan Sanjeevraja

Date: 24.10.2011

RE: Taming Inflation

Suggestion: Tightening Fiscal Policy

Good Morning Sir. I read your report which has been published in “THE HINDU” dated on October 21, 2011. You were talking about the rollback of the excise duty stimulus. I think you are heading into the opposite direction sir. We need more symmetric use of fiscal policy is now required to temper growth and inflation. Because inflation continues to remain elevated despite RBI has increased interest rates 12 times since March 2010. Monetary policy tightening may have been a stronger lever the taming inflation in the past but not today. I am still insisting that monetary policy no longer works to taming inflation. The answer, therefore, is fiscal tightening. Taxes need to go up and spending cut. This would curtail demand and ultimately price pressure. A hike in income tax rates would weigh on the purchasing power of households and rein in inflation expectations. Our goals maintain ambitious program to build out infrastructure. In addition, governments will continue to run sizeable deficits in the coming year. Of course, this may well be justified. Moreover, you help to raise the productive potential of local economies and drive down excessive saving rates among households.

Fiscal tightening, of course, politically unpalatable but aggressive fiscal tightening would offer a chance to fiscally achieves meaningful consolidation of the public money. Moreover, the world would hardly benefit if India’s inflation continues to remain elevated. Tempering price pressures in India helps western consumers too in struggling with high unemployment and considerable debt.

Thank you very much for your kind attention Sir.

Sincerely,

Athinarayanan Sanjeevraja.

Follow me on Twitter: @ Athinarayanan Advisory Authority

Comments

THANK YOU NOTE TO FORMER CHIEF JUSTICE OF INDIA DR A S ANAND

To: The Hon’ble Dr. Justice A.S. Anand, Former Chief Justice of India & Empowered Committee Chairman From: Athinarayanan Sanjeevraja Date: Wednesday, July 25, 2012 RE: Thank you and the members of Empowered Committee and the five judge constitution Bench of Supreme Court Judges. My lord, please accept my heartfelt thank you and the members of Empowered Committee and the five judge constitution bench of Supreme Court Judges on behalf of myself and all of the people in Tamilnadu for saving lakhs of farmers in the southern districts of Tamilnadu and the fine report you made. I wish you continued success in what you are doing my lord. The completion of the remaining judgement on Mullaperiyar will require Dharma. Every judgement should apply Dharma. Dharma should not be destroyed in any of our judgement. My lord, As you knew that “ according to lease agreement indenture granted full right, power and liberty to the Tamilnadu to construct make...

TAMIL NADU AUTOMOTIVE POLICY RECOMMENDATION (TNAPR)

To: The Right Honourable Tamilnadu Chief Minister Dr. J. Jayalalitha From: Athinarayanan Sanjeevraja Date: November 19, 2012 RE: Tamilnadu Automotive Policy to make Chennai, the world’s largest auto-hub Suggestion: We need effective Automotive Policy that will prove to be favourable to the development of our State Good Afternoon Ms. Chief Minister. You already said that our government to make Chennai, the world’s largest auto-hub during the signing of MoU with 12 firms on Monday. We are committed to do it. We can make it happen by 2023. It requires our government policy should be able to attract new players from around the world by offering favourable production environment as well as some incentives for new players to promote Chennai, the world’s largest auto-hub. We have done it so far by allowing MNC car companies to establish local production. It is time to make Chennai, the world’s largest auto-hub. It is my belief that offering incentives alone is not suf...

HONG KONG EXTRADITION BILL 2019

To: The Right Honourable Chief Executive of the Hong Kong Special Administrative Region of the People’s Republic of China Ms. Carrie Lam From: Athinarayanan Sanjeevraja Date: August 29, 2019 RE: HONG KONG EXTRADITION BILL 2019 Suggestion: Hon. Chief Executive of the Hong Kong let me start by paying my respects to you and through you to. “One Country Two Systems” structure compels Hong Kong to operate currently under different legal system than that of Mainland China. You published the extradition bill on March 29, 2019 and first reading on April 3, 2019 which will destroy Hong Kong legal independence because extradition bill is another attempt for China to take away the Hong Kong independent legal system that China has agreed for Hong Kong to keep until 2047. Thus, the people of Hong Kong marched their protest against the bill on June 9, 2019. Hong Kong protests are still continuing. The silence of your government lead...

Search This Blog