Comments on: Inflating prices http://www.tsheringtobgay.com/economy/2010/inflating-prices.html Life and Politics in Democratic Bhutan Wed, 08 Feb 2012 10:25:21 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: critic http://www.tsheringtobgay.com/economy/2010/inflating-prices.html#comment-6343 critic Sat, 21 Aug 2010 03:30:17 +0000 http://www.tsheringtobgay.com/?p=2442#comment-6343 The other concern is the food self-sufficiency. How is our position on the food self-sufficiency? Where are we in terms of the target? People cannot be happy if there is not sufficient food to feed their stomachs. Positive views on food sufficiency can be found at http://www.juliansimon.com/writings/Ultimate_Resource/ The other concern is the food self-sufficiency. How is our position on the food self-sufficiency? Where are we in terms of the target? People cannot be happy if there is not sufficient food to feed their stomachs. Positive views on food sufficiency can be found at

http://www.juliansimon.com/writings/Ultimate_Resource/

]]> By: critic http://www.tsheringtobgay.com/economy/2010/inflating-prices.html#comment-6341 critic Fri, 20 Aug 2010 08:52:41 +0000 http://www.tsheringtobgay.com/?p=2442#comment-6341 Sorry the link for the article on food sufficiency is Sorry the link for the article on food sufficiency is

]]> By: Bhutanblogs http://www.tsheringtobgay.com/economy/2010/inflating-prices.html#comment-6329 Bhutanblogs Mon, 16 Aug 2010 17:43:07 +0000 http://www.tsheringtobgay.com/?p=2442#comment-6329 ST Rice (Stone Free Rice)...mmm...would it have meant SF Rice? Like truth says, it's bothering...Maybe our honourable OL meant Super Fine Rice? ST Rice (Stone Free Rice)…mmm…would it have meant SF Rice? Like truth says, it’s bothering…Maybe our honourable OL meant Super Fine Rice?

]]> By: Nima http://www.tsheringtobgay.com/economy/2010/inflating-prices.html#comment-6321 Nima Thu, 12 Aug 2010 04:03:14 +0000 http://www.tsheringtobgay.com/?p=2442#comment-6321 Why doesnt the government do something about the raising cost. what about us.... the 'Amm Aadmi'. the only solution is to reduce the tax Why doesnt the government do something about the raising cost. what about us…. the ‘Amm Aadmi’.

the only solution is to reduce the tax

]]> By: Bloom http://www.tsheringtobgay.com/economy/2010/inflating-prices.html#comment-6319 Bloom Wed, 11 Aug 2010 08:55:26 +0000 http://www.tsheringtobgay.com/?p=2442#comment-6319 I feel sorry for those ppl who have lots of mouth to be fed. i think the government should do something. I feel sorry for those ppl who have lots of mouth to be fed.
i think the government should do something.

]]> By: truth http://www.tsheringtobgay.com/economy/2010/inflating-prices.html#comment-6300 truth Mon, 09 Aug 2010 05:36:19 +0000 http://www.tsheringtobgay.com/?p=2442#comment-6300 The "stone free rice"really bother me. Aren't rice supposed to be stone free? The “stone free rice”really bother me. Aren’t rice supposed to be stone free?

]]> By: Tangba http://www.tsheringtobgay.com/economy/2010/inflating-prices.html#comment-6241 Tangba Sat, 31 Jul 2010 03:01:12 +0000 http://www.tsheringtobgay.com/?p=2442#comment-6241 Like it or not but this is the fact. We are not only HEAVILY dependent on almost everything that we use in our daily lives from the basic table salts to the hitech computers on external factors, we are also HELPLESSLY dependent on them. We can not do anything at all about these shooting prices. Can we? And sandwiched between two economic super powers of the world who is interested in nothing but GDP and expansion of their economy, our GNH will remain nothing but a utopian doctrine that will make a lot of sense but does not work quite very well in reality. Honestly, although I agree that the idea and the principles of GNH are in essence very noble and good,pursuit of GNH in a world where GDP has strongly established itself as a life blood will be suicidal and catastrophically disastrous! Like it or not but this is the fact. We are not only HEAVILY dependent on almost everything that we use in our daily lives from the basic table salts to the hitech computers on external factors, we are also HELPLESSLY dependent on them. We can not do anything at all about these shooting prices. Can we? And sandwiched between two economic super powers of the world who is interested in nothing but GDP and expansion of their economy, our GNH will remain nothing but a utopian doctrine that will make a lot of sense but does not work quite very well in reality. Honestly, although I agree that the idea and the principles of GNH are in essence very noble and good,pursuit of GNH in a world where GDP has strongly established itself as a life blood will be suicidal and catastrophically disastrous!

]]> By: Thinlay http://www.tsheringtobgay.com/economy/2010/inflating-prices.html#comment-6239 Thinlay Fri, 30 Jul 2010 12:33:07 +0000 http://www.tsheringtobgay.com/?p=2442#comment-6239 I agree. Hot debate is going on in India about soaring food prices. As stated, Bhutan alone may not be able to contain soaring food prices. Let us keep fingers cross and hope the food prices stabilizes or come down in India. I also agree that Bhutan benefits from tying value of NU with Indian RS. For time being we should keep it that way. Cheers I agree. Hot debate is going on in India about soaring food prices. As stated, Bhutan alone may not be able to contain soaring food prices. Let us keep fingers cross and hope the food prices stabilizes or come down in India. I also agree that Bhutan benefits from tying value of NU with Indian RS. For time being we should keep it that way.

Cheers

]]> By: Zekom http://www.tsheringtobgay.com/economy/2010/inflating-prices.html#comment-6238 Zekom Fri, 30 Jul 2010 10:48:35 +0000 http://www.tsheringtobgay.com/?p=2442#comment-6238 Before we go any further … It’s good to remember that there are a number of causes for inflation. Demand relative to supply of goods and services Thinlay mentioned is indeed one of the important causes. The Kuensel article, which OL linked, details this and mentions some others too. Among others, critical ones are the amount of money in circulation in the economy, and how fast it goes around chasing after goods and services (economists call it the “velocity” of money). Most national economies have ways of controlling the amount and the velocity of money – they're called monetary policies. In sum, Central Banks can do various things to influence the price of money, i.e., interest rates. I said “most national economies.” Drukyul is exceptional in the world, of course, and in this too! Basically, we do not have the independent monetary policies. Why? Because we have chosen to tie our money to Indian rupees, one to one. So, when Indian economy inflates, so do we. Is India experiencing rising inflation nowadays? Yes. Reportedly, it’s hitting double-digit rates of late. Obviously, the Reserve Bank of India is concerned, and have been raising its benchmark interest rates for some time now. Don’t rush to de-link our money with India’s, though! As a small economy, we do enjoy a lot of benefits associated with the tied currency. Before we go any further …

It’s good to remember that there are a number of causes for inflation.

Demand relative to supply of goods and services Thinlay mentioned is indeed one of the important causes. The Kuensel article, which OL linked, details this and mentions some others too.

Among others, critical ones are the amount of money in circulation in the economy, and how fast it goes around chasing after goods and services (economists call it the “velocity” of money).

Most national economies have ways of controlling the amount and the velocity of money – they’re called monetary policies. In sum, Central Banks can do various things to influence the price of money, i.e., interest rates.

I said “most national economies.” Drukyul is exceptional in the world, of course, and in this too!

Basically, we do not have the independent monetary policies.

Why? Because we have chosen to tie our money to Indian rupees, one to one.

So, when Indian economy inflates, so do we.

Is India experiencing rising inflation nowadays? Yes. Reportedly, it’s hitting double-digit rates of late. Obviously, the Reserve Bank of India is concerned, and have been raising its benchmark interest rates for some time now.

Don’t rush to de-link our money with India’s, though! As a small economy, we do enjoy a lot of benefits associated with the tied currency.

]]> By: TrueDukpa http://www.tsheringtobgay.com/economy/2010/inflating-prices.html#comment-6236 TrueDukpa Fri, 30 Jul 2010 10:41:23 +0000 http://www.tsheringtobgay.com/?p=2442#comment-6236 So, is the government doing anything about it? No, I don't think so. Out of many reason, least they care is the people, because for them it is the 'self' that fronts the people's concerns. Elsewhere the predominant factor of the government that keeps them going strong is because they have learned to care and uphold people or the public above anything. Quite opposite is how our government function, it is all about 'self'. What is the government doing about it? What is the government doing about the following?: 1. Unemployment issues 2. Access to Basic/Primary Health Care 3. Education and its quality 4. Poverty 5. GNH 6. Corruption and etc etc etc Even though the government is aware of the current situation of the country, there has little or none efforts in improving various situations in the country. Either they are blinded entirely by 'self' or they choose to ignore it and let the people confront the consequences. At the end of the day, we all know, the situation is turning into no good or even worse... So, is the government doing anything about it? No, I don’t think so. Out of many reason, least they care is the people, because for them it is the ‘self’ that fronts the people’s concerns. Elsewhere the predominant factor of the government that keeps them going strong is because they have learned to care and uphold people or the public above anything. Quite opposite is how our government function, it is all about ‘self’.

What is the government doing about it? What is the government doing about the following?:

1. Unemployment issues
2. Access to Basic/Primary Health Care
3. Education and its quality
4. Poverty
5. GNH
6. Corruption and etc etc etc

Even though the government is aware of the current situation of the country, there has little or none efforts in improving various situations in the country. Either they are blinded entirely by ‘self’ or they choose to ignore it and let the people confront the consequences. At the end of the day, we all know, the situation is turning into no good or even worse…

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