Monetary Policy - Inflation

The August 2007 issue of Reserve Bank of India Bulletin makes a interesting reading in as much as a robust economy is projected with commendable achievements in almost all sectors be it Agriculture, Industry, Manufacturing, Communication, Service, Banking etc. As per the Reserve Bank of India Bulletin Indian Economy continued robust growth in 2006-2007 for the fourth successive year buoyed by the sustained momentum in the services, manufacturing and other sectors. The Agricultural sector has also shown a sustained growth. The growth in Agricultural sector is mainly due to South West Monsoon which has been satisfactory despite hiatus due to initial delays in its onset over western, north western and central regions. The cumulative rainfall during 2007 season (upto July 07) was 4 percent above normal as compared with 14 percent below normal during the corresponding period of the previous year - Source India Metrological Department. As of July 07 total area of Kharif sown was 1.7 percent higher than that in the corresponding period of 2006. According to the fourth Advances estimate the food grain production during 2006-2007 was 216.1 million tones an increase of 3.6 percent over previous year source - Ministry of Agriculture, Government of India. Industrial output has increased more than the expected level in April / May 2007. The Industrial production remained robust during April / May 07. It has clocked a record expansion of 11.7 percent. The manufacturing of sector has shown an impressive growth of 12.7 percent - Source - Central statistical organization. The service sector growth during 2006-2007 has shown a commendable growth in as much as it has contributed 71.5 percent to the overall GDP growth of 9.4 percent - source Ministry of Tourism, Ministry of Commerce and Industry, Ministry of Statistics, Programmed Implementation RBI and CMIE. The other sectors which have shown significant growth are Communication, Corporate and Banking. The perceptible growth in other sectors also contributed to a robust economy.

Though our economy is growth oriented it is not a bonanza to the average consumer. The benefits of the growth in economy have not percolated to the common man. There are grey areas which needs the Government's attention. A large portion of the population especially in the rural areas and in towns is well below the poverty line. Unless the Government takes immediate corrective steps to ameliorate their standard of living the average consumer will find it arduous to make both ends meet.

As per the statement of Reserve Bank of India Governor on the First Quarter Review, Review of Annual Monetary Policy for the year 2007-08 and published in the August 2007 issue of Reserve Bank of India Bulletin, Inflation measured by variations in the wholesale price (WPI) on a year-on-basis declined from 5.9 percent at the end of March 07 to 4.4 percent as on 14th July 07. The inflation during August / Sept 07 is reported to have declined further. Though the figures are in consonance with the Finance Ministers expectations it does not augur well with the purchasing power of the average consumer. The average consumer is more concerned with retail prices of commodities rather than whole sale price.

After all he is not going to make purchases in bulk in the whole sale market as many of the commodities like vegetables, eggs, milk, fish, fruits etc. are perishable by nature. Further when the general inflation is reported to be hovering around 3.5 percent the food prices Index is about 8.5 percent. The prices of onions, potato, pulses and even rice and wheat are spiraling upwards. The common man is concerned only with consumer price Index as it gives due weight age for food, fuel, transport, clothing, housing, medical care, education etc. which has a direct impact on him. The Real Estate market is over heated and dreams of owning a house is shattered as the prices have sky rocketed in all cities and even in towns. It is only the affluent class of people and professionals from I.T. Industry purchase flats / house at exorbitant price as their purchasing capacity can withstand the buyers offer. It is not known whether the government has considered the housing cost when computing whole sale price Index. Another aspect which the average consumer is concerned is the medical care. There is no denying the fact that the cost of medicines and hospitalization has spiraled since the last couple of years and the Government has not made any attempt to curb the prices. The premium on Mediclaim policy issued by the Insurance Companies has shot up by 200 percent.

With the increase in prices of all commodities having a direct impact on the average consumer, there is no reason for the Government to gloss over the general inflation which they claim to have pegged. The inflation figures projected by the government are not based on reality check. The significant growth in the economy should have translated into a bonanza for the average consumer by making available the basic necessities at affordable prices.

It is imperative that the government takes appropriate steps at the earliest to evolve a fool proof system for computing the whole sale price Index which should not be in contrast to the Consumer price Index at least with respect to the basic necessities of the average consumer. This in reality will act as the yard stick for measuring the general inflation which otherwise gets camouflaged, by whole sale price Index.

Anger Management

Anger is the most experienced emotion that threatens to rule our lives. I believe that anger is a signal that denotes we are deprived of our needs without justification, our rights are infringed and our feelings have been hurt. Angry people like other angry animals look vicious. Anger signals a problem but venting anger is not the solution. Anger is responsible for strained relationship as it propels us to take action which we dare not take in the normal course. Anger is the memory of being hurt. To resolve your anger first possess your hurt. Medical parlance states that an uncontrolled anger can raise the level of energy hormones and adrenalin culminating in a paralytic stroke or even a cardiac arrest. Violent anger is said to be normally prevalent in families which are emotionally unbalanced and not adept at emotional communication. Anger is inevitable as our lives have to adjust to giving in and getting along with others. But when we voice our anger without clarity and control we give an impression that we are unbalanced and provide others with a notion not to take us seriously. When we are angry it is imperative that we state our thoughts and feelings clearly so that it is congruent with our values and beliefs. If we do not understand our anger we fail to clarify our feelings, thoughts and priorities culminating in endless bickering. An effective solution to counteract our anger is to analyze the real issue instead of getting embroiled in the bickering without actually knowing the cause.

I believe that one of the hall marks of emotional maturity is to recognize the validity of multiple realities and to understand that people think, feel and react differently.

When we use anger to determine our values, priorities and our needs we don't have to become distressed to note that we are unclear. However our lack of clarity does not tantamount to weakness, on the contrary it should be taken as a challenge, and our strength. It would be more appropriate if we could use our anger as a lever to change patterns. At times our anger creates a fear in us for we apprehend that our anger may be ridiculed by others. It is important to maintain a calm position when it involves bickering with close relatives to bring about a lasting change. There is nothing wrong in trying to change someone but normally this attempt to change others remains futile, abortive and self defeating. It is better to move away from such ineffective fighting and give up the fantasies about changing others or change yourself to adapt to circumstances without sacrificing your values. Change is easier when you share your intentions and progress with some one you care. It is said that people who try to change for the good are healthier and happier than those who stay in the rut. Sometimes we do not express our anger but tend to suppress it. This in fact triggers stress leading to a personality perpetually cynical and hostile. In such an event a compromise is healthier because one adjusts willingly and is aware what he is giving up without sacrificing his values. Every problem has a solution but when we find that this is not so always we succumb to anger and this leads to frustration. If frustration is not nipped in the bud it leads to depression. In depressive mood withdrawal symptoms take the better of the depressed person. The person becomes paranoid and is eventually beset with pathological symptoms.

Marital spats are harmful to life. After the initial euphoria of blissful married life wanes, Couples engage in interminable spats as they traverse on two different orbits. They realize that there is a stark contrast in all their views and total dissonance in all their tastes, likes and dislikes. It takes time for them to accept each others strength and weakness. Hence arguing becomes an inevitable part of married life. It is said that the nuanced interactions between the couples and how they react to and resolve the conflict goes a long way to make a meaningful difference in the health of the marriage and the health of the couple.

Management of anger is vital for a healthy relationship. Relaxation is an important tool for managing anger. There are other modes of managing anger as follows.

1. Take a deep breath and exhale slowly for a couple of times
2. Listen to your favorite music as it has a soothing effect on the mind. Music perhaps more than any external experiences have the power to bring you home to yourself.
3. Yoga and meditation helps in the long run.
4. Talk to your friend or close relative in whom you have confidence and unwind yourself.
5. Read a book.
6. Go for a long walk.
7. Avoid the situation leading to anger.
8. In anger if you blurt expletives apologise immediately. An apology does not lower your self esteem; on the contrary it enhances your self esteem.

Winning a war against exceptive is as vital as winning a war against terrorism. After all if character is lost, everything is lost. Life is a precious gift; one has to savior it and not makes it an endless series of chores.