Sunday, January 3, 2010

Green Light Dhaba on the Road with an EXPLANATION for all that INFLATION

I've been thinking a lot about inflation these days--haven't we all! I'm convinced that current jump in food prices is the result of forces and trends that will become more and more dangerous over time.  

Serious discussions of inflation tend to be boring and confusing.  Which explains why most politicians and public opinion makers are boiling things down to easily digestible sound bytes, strong on volume and blame, weak on analysis. In all the noise, we are missing something important.  You see, unlike the inflation we had in 2008 up until the time the world economy crashed and oil prices plunged,  the inflation we are seeing in India is not the result of high fuel prices. (That kind of inflation will come back soon enough, and then we'll really be in trouble.)  No the inflation we have today has been made possible by a human-made (and terribly mismanaged) environmental crisis--and it's likely to get worse if we don't take serious action soon.

I gave the good people over at Youth Ki Awaaz a guest post on this subject.  It's longer than a sound-byte, and it's not good for many laughs--making inflation funny, was beyond me!  But I've tried to tell the truth, without being boring and confusing.  Extreme weather, extreme acronyms  (CPI (M) BJP, CPI, WPI...)  and the Commonwealth Games are all in there! You can read it here.  And while you are at it, check out the rest of the Youth Ki Awaaz site. They have a lot of interesting stuff going on there.

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