Summary:
On what is the acceptable inflation rate, he says, "We had once said that 4 % is acceptable. To bring about relative price change, it is believed, we have to tolerate higher inflation rates. To raise growth rates, w need to raise investments, says Mr.
Subbarao. In fact, sustained high growth rate is only possible in an environment of reasonable price stability. Many people believe there is trade off between growth and inflation, this is a false dichotomy, says Subbarao..