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How India can sail through an inflation tide

Just as monetary policy lets rising crude prices filter through the system, instead of trying to stamp them out, monetary policy should allow rising prices of steel, copper, coal, iron ore, etc, filter through the production process and produce appropriate responses of raising output, increasing the production of close substitutes, increasing efficiency. Any temptation to raise policy rates and choke off the price rise of these raw materials should be resisted.

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