KAKA BEN bata kai sikam

I read a very interested op-ed by Federal Reserve chairman in yesterday's Wall Street Journal . In the article, Chairman Bernanke points out the various strategy The Federal Reserve with employee to tame inflation in the future.

This article made me think,even though, deflation is a greater treat then inflation in United States right now.When people like Warren Buffet and Paul Krugman are advocating for 2ND stimulus package.Why are policy markers already drawing out plans -how to tighten monetary policy ?



Uncle Ben ends his article writing "We will calibrate the timing and pace of any future tightening, together with the mix of tools to best foster our dual objectives of maximum employment and price stability"

This ending statement gave me my answer.....Federal reserve is just doing its job.It's job is to control the flow of credit in the market,and be able to use the necessary tool to open the clogging or drain the overflow when needed.

Ok..If that's the case,why is it the Central Bank Nepal says they have lost all the means to control the inflation? I have no idea ..Let's for a minute buy the argument that monetary policy has no control over inflation at least in the current predicament .

How about the fiscal policies ?

Why in hell did government decide to agreed to raise the salary of civil servants by up to 6 percent and their monthly allowances by Rs. 1200.


I am not against the salary hike , but I don't think this is a right time to do so.Nepalese civil sevrvent had big pre-budget expectations about the salry hike,but when the budget was announced there was no sign of salary hike.To force the government to meet their demands agitating kamacharis took the most easiest route the which almost always works- STRIKE

Possibility one of the reason why Civil servants where expecting a raise was last year's India's 6% salary raise for the Central government worker (Sixth Pay Commission ). I wish instead of taking ideas from India,they should have taken advise from some of the American CEOs ,governer,mayor who are working for $1 yearly salary


Like I have mentioned earlier I am not against the pay hike,but this is not the right time. When inflation is already around 13 %, salary will further drive up the price Level...

In addition,monsoon is favouring the farmers .The annual monsoon rains are 50% deficient this year.Lack of rain is also a major treat,which will likely push inflation even further ....High food price ,short supply may cause to erupt food roits in Nepal ...............................................