Checking Inflation-A Note

Checking Inflation A Note Rajendra Kumar C N VAKIL and PR Brahroanand have, in a Memorandum* to the Central Government, suggested a number of policy steps with a view to freeing the Indian economy from inflation, thereby ensuring the best use of the available resources in an atmosphere of continued price stability. The keynote of the prescriptions is a 5 per cent ceiling on money supply expansion over a five-year plan period, allowing for yearly flexibility during the five-year period. The urgency of monetary and fiscal discipline in order to limit the money supply expansion to 5 per cent annually on average is deemed to be so acute that the au- thors have urged the inclusion of a new clause in the Indian Constitution as follows: