My favourite part of this episode - 50:40 - 51:10 - Amit - " Do you want to look it up? 📱" Ajay - " I'm looking it up 🧠" Learning happens through retention and not taking the easy option out but thinking hard, mind mapping all the readings and interactions over years to trace back the exact quote is brilliant. Sometimes the hard way is the right way!
Thank you for your service Ajay. We got to know you through this podcast but there are so many other people who work hard behind the scenes to bring about these important changes which impacts the masses. So, thank you to all of you for your service.
Inflation Targeting Rocks! References 4:45 | The Economic Consequences of the Peace by John Maynard Keynes - Discussed in the context of National Wealth and its impact post-WWI. 5:05 | Ep. 130 Demystifying GDP (The Seen and the Unseen) - A deep dive into the concept and measurement of GDP. 19:30 | The Role of Monetary Policy by Milton Friedman - Explains why inflation control is critical to economic stability. 22:40 | The Use of Knowledge in Society by Friedrich A. Hayek - The power of decentralized decision-making in economies. 29:50 | How to Do Development (Everything is Everything Ep. 57) - Why economic growth is the ultimate key to development. 30:50 | Public Choice Theory Explains SO MUCH (Everything is Everything Ep. 33) - The dangers of unchecked power in public policy. 48:40 | The Long Road to Change (Everything is Everything Ep. 36) - How gradual policy changes shape society over time. 58:25 | Ep. 355 The Life and Times of KP Krishnan (The Seen and the Unseen) - An interesting story
An instant breeze of motivation moves through me, just listening to Ajay ji's infinite knowledge of economics, shall be easier to go back to studies now.
One question, Ajay mentioned that only Central Banks can create inflation. Can't Fractional reserve banking also create inflation? Changing reserve ratios can affect inflation also no? A 100% reserve ratio would reduce inflation too right?
Nice episode, Ajay and Amit. The implicit assumption, however, is that inflation is a demand-side problem. But what if inflation is caused purely by supply-side factors? Raising interest rates wouldn’t curb inflation, but it could depress growth, potentially leading to stagflation. Moreover, higher interest rates, without addressing the root causes of inflation, could disproportionately affect the poor by eroding real wages. I’d love to hear your views on this.
1. Ajay sir, whats your opinion on the recent debate started by the Economic Survey on removing food component from CPI? The survey and a recent article by CEA does seem to make a compelling argument, especially considering the pro consumer and anti farmer bias of Indian policy 2. Recommendations for readers- a) What went wrong with capitalism by Ruchir Sharma: will give a very good view of how central banks have gotten things wrong even in developed countries. b) Forks in the Road by C Rangarajan.
Can you speak to result of inflation on key sectors including real estate, consumer food, white goods, pharma, , the incidence of falling prices in some pockets.
I sense some cognitive dissonance when both of you are so happy with the RBI setting the short term interest rates while having read (and presumably agreeing with) Hayek's ideas on how central planners have no clue about what individuals want.
Decreasing interest rate during covid doesn't make sense because in the long run we know for a fact that inflation will run rampant then why do that? What do you think @Amit? For example: If money is needed to feed the poor people why not borrow & use the money. If the argument is "bike sales will drop during covid so reducing interest rate will make people afford the loan". I don't any sense in this because after inflation people either default or sell off the bike because interest spike. It is better for the common man to wait until he feels that he make that purchase in the normal interest rate scanrio. It just feels like bait & trap model.
My favourite part of this episode - 50:40 - 51:10 -
Amit - " Do you want to look it up? 📱"
Ajay - " I'm looking it up 🧠"
Learning happens through retention and not taking the easy option out but thinking hard, mind mapping all the readings and interactions over years to trace back the exact quote is brilliant.
Sometimes the hard way is the right way!
Thank you for your service Ajay. We got to know you through this podcast but there are so many other people who work hard behind the scenes to bring about these important changes which impacts the masses. So, thank you to all of you for your service.
Yall saying “prices” together is the cutest thing ever. Made my Friday.
Sister
This is the best podcast in india.
I'm getting "Growth is the greatest God" on my tshirt! 😍
Inflation Targeting Rocks!
References
4:45 | The Economic Consequences of the Peace by John Maynard Keynes - Discussed in the context of National Wealth and its impact post-WWI.
5:05 | Ep. 130 Demystifying GDP (The Seen and the Unseen) - A deep dive into the concept and measurement of GDP.
19:30 | The Role of Monetary Policy by Milton Friedman - Explains why inflation control is critical to economic stability.
22:40 | The Use of Knowledge in Society by Friedrich A. Hayek - The power of decentralized decision-making in economies.
29:50 | How to Do Development (Everything is Everything Ep. 57) - Why economic growth is the ultimate key to development.
30:50 | Public Choice Theory Explains SO MUCH (Everything is Everything Ep. 33) - The dangers of unchecked power in public policy.
48:40 | The Long Road to Change (Everything is Everything Ep. 36) - How gradual policy changes shape society over time.
58:25 | Ep. 355 The Life and Times of KP Krishnan (The Seen and the Unseen) - An interesting story
Thank you for doing this !
An instant breeze of motivation moves through me, just listening to Ajay ji's infinite knowledge of economics, shall be easier to go back to studies now.
WHOAHHH, why am I discovering this channel just today!! Need to catch up on the previous 67 episodes
Very nice!
One question, Ajay mentioned that only Central Banks can create inflation. Can't Fractional reserve banking also create inflation? Changing reserve ratios can affect inflation also no? A 100% reserve ratio would reduce inflation too right?
Yes Bitcoin monetary policy is based on that. Great thought
I got to the point where i take notes in my notebook while watching your videos.
I noticed the new logo of your channel it's good.
So many insights! Really ty!
50:40 I want this power!
That's fascinating! Many govt contracts (including road toll tender prices) are benchmarks to wpi. TIL it's not got any consumption basis.
So e.g. the WPI steel subcomponent is well measured. But the overall WPI is some odd combination.
Shout out to Nomsita and Vaishnav for the brilliant editing at the end!
Nice episode, Ajay and Amit.
The implicit assumption, however, is that inflation is a demand-side problem. But what if inflation is caused purely by supply-side factors? Raising interest rates wouldn’t curb inflation, but it could depress growth, potentially leading to stagflation. Moreover, higher interest rates, without addressing the root causes of inflation, could disproportionately affect the poor by eroding real wages.
I’d love to hear your views on this.
1. Ajay sir, whats your opinion on the recent debate started by the Economic Survey on removing food component from CPI? The survey and a recent article by CEA does seem to make a compelling argument, especially considering the pro consumer and anti farmer bias of Indian policy
2. Recommendations for readers-
a) What went wrong with capitalism by Ruchir Sharma: will give a very good view of how central banks have gotten things wrong even in developed countries.
b) Forks in the Road by C Rangarajan.
Can you speak to result of inflation on key sectors including real estate, consumer food, white goods, pharma, , the incidence of falling prices in some pockets.
50:40 there could be edits of Mr. Ajay Shah with some lofty breaking bad music in the bg. 😂
Gosh, I haven't watched the episode but what a background!
Is there any relation between the health of the stock market and that of the economy?
If growth is the greatest God
Then inflation is a great choreographer.
❤
Musical references😂❤
I sense some cognitive dissonance when both of you are so happy with the RBI setting the short term interest rates while having read (and presumably agreeing with) Hayek's ideas on how central planners have no clue about what individuals want.
Ajay Shah watches the great “Yeti hote hain kya?” show!
A man of great taste!
Please explain!
@@ajayshah5705talking abt beerbiceps brainrot podcast, I guess
That's the only obsession the BeerBiceps guy has- asking spiritual salesmen to science communicators to strategy thinkers- "Do Yetis exist?"
I am not quite sure if growth is the greatest god. I think freedom is the greatest god.
But then I am not a fanatic.
Freedom is the only path to growth.
Within first 50 views
Decreasing interest rate during covid doesn't make sense because in the long run we know for a fact that inflation will run rampant then why do that? What do you think @Amit?
For example: If money is needed to feed the poor people why not borrow & use the money.
If the argument is "bike sales will drop during covid so reducing interest rate will make people afford the loan". I don't any sense in this because after inflation people either default or sell off the bike because interest spike. It is better for the common man to wait until he feels that he make that purchase in the normal interest rate scanrio.
It just feels like bait & trap model.
Can you research on bitcoin as this could be the solution.?
Fix the money, fix the world