Summary:
In fact, sustained high growth rate is only possible in an environment of reasonable price stability. On what is the acceptable inflation rate, he says, "We had once said that 4 % is acceptable. He says government policies have impact on output and inflation and teh central banks can only work for price stability. Many people believe there is trade off between growth and inflation, this is a false dichotomy, says Subbarao. Watch:Session 1:Balancing Growth and Inflation: D Subbarao, Former Governor of RBI C Rangarajan, Former Governor of RBI, Montek Singh Ahluwalia, Former Deputy Chairman, Planning Commission of India, In conversation with Raghavan Srinivasan, Editor, The Hindu BusinessLine10.30 a.m..