Those who are great researchers are not only great because of their extraordinary knowledge rather the way , they link those matters of rocket science with the most basic principles. They make even the most critical subject so easy to understand. The lecture by Dr. Subir Gokarn was one such experience.
He was there to give an introductory lecture on sustainability of Indian's growth in future. The way he explained the relationship between the productivity, wages, inflation and all the present happenings was unattainable by many of us.
As per him, because of current rise in income of the Indian citizens specially in the rural region because of these govt. initiatives like MGNREGA and others, where productivity of labor hasn't been improved. In fact, there is decline in their productivity of these labors because of poor planning of govt. officials at lower level. Because of which, same road been constructed by two different agencies in a span of 6 months. Although the basic aim behind these programmes is to give employment. And the issue of productivity has been neglected. At industrial level, this is happening to less extent.
Now the people has money but the services are not generated up to mark which ultimately leading to inflation due to supply side constraint, which is arisen because of lower productivity. Now, if RBI try to contain this inflation for long term growth sustainability so that real value of money will be intact. But the way things are going with RBI following the classical economy and govt. laying emphasis on Keynesian economy; things will be pretty much tough to handle for both of them.
~All these facts and much more, when coupled with graphs and figures and from the mouth of Dr. Gokarn feels so smoothing and easy~
Only experience can give justice to this.
He was there to give an introductory lecture on sustainability of Indian's growth in future. The way he explained the relationship between the productivity, wages, inflation and all the present happenings was unattainable by many of us.
As per him, because of current rise in income of the Indian citizens specially in the rural region because of these govt. initiatives like MGNREGA and others, where productivity of labor hasn't been improved. In fact, there is decline in their productivity of these labors because of poor planning of govt. officials at lower level. Because of which, same road been constructed by two different agencies in a span of 6 months. Although the basic aim behind these programmes is to give employment. And the issue of productivity has been neglected. At industrial level, this is happening to less extent.
Now the people has money but the services are not generated up to mark which ultimately leading to inflation due to supply side constraint, which is arisen because of lower productivity. Now, if RBI try to contain this inflation for long term growth sustainability so that real value of money will be intact. But the way things are going with RBI following the classical economy and govt. laying emphasis on Keynesian economy; things will be pretty much tough to handle for both of them.
~All these facts and much more, when coupled with graphs and figures and from the mouth of Dr. Gokarn feels so smoothing and easy~
Only experience can give justice to this.
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