Inflation and developing economy

As an economy develops the per capita income also increases. Benefits of the development start reaching the bottom of the economical structure. Their purchasing power and thus demand increases, this increases the price. Increase in the price pushes them to earn more. They become more efficient to earn more to meet their requirement. Hence contributes in the development. Inflation causes the development. According to a Times report, inflation had been used as the tool by the Latin American governments for the economical development.

When the inflation becomes higher, government starts spending more on curbing inflation than development works. Giving subsidized food to the poor usually controls food inflations, which costs more for the government. The central bank increases the lending rates, which in turn pressurizes the banks to push their products at higher interest rate. The growth slows down.

Most challenging problem in the developing economy arises when it faces the problem of wage-price-spiral. When the economy develops, the industries see prosperity the workers demand for higher wage. Higher wages increases the cost of the products. Hence the manufacturer and the service providers increase the price of the product. This in turn affects the society and again a demand for the higher wage. This cycle is called as wage-price-spiral. Presently Indian economy is facing this problem and central bank accepts it is very difficult control wage-price-spiral.

Moderate inflation is always good for the developing economy. But development should not be an excuse for the central government and central bank for its failure to curb the problematic inflation.

Inflation is the second nature of developing economy. But development should always be the first nature.

Jul 1: State Bank Day

You might have seen front page advertisements by State Bank of India in today's major news papers across the country. State Bank celebrates State Bank Day by doing remarkable community service every year on 1st Jul, this year 14000 branches of SBI donated 140000 fans to the schools. So what is this State Bank Day?

Intention of forming State Bank of India post independence was to make the formal banking and financial service reach the every corner of the country. Though SBI has grown far bigger than any private profit making banks, its basic intention was social banking. Imperial Bank of India was functioning as commercial and as well as central bank during the period of British rule in India. But our leaders felt there should be our own, state owned banking institution to make the financial services reach the every corner of the country. In the year 1955 Reserve Bank of India acquired the central bank functioning from Imperial Bank. Similarly to perform the commercial bank functioning the Imperial Bank of India was renamed as State Bank of India.

This major break through in the Indian banking industry was started with an parliament act in the year 1955. State Bank of India was given legal recognition by the provisions of the State Bank of India Act of 1955 which came into force from 1 July 1955. This parliament act enabled SBI to be considered as 'state' and the employees to be 'public servant' giving more responsibility in making the banking service reach the public. On that day SBI had 480 branches. Immediate requirement was to expand its presence to make reach banking service to every citizen. Now State Bank controls nearly quarter of the banking business in the country.

So the day on which the new era of the Banking Industry in India has started i.e. July 1st is celebrated by State Bank of India and its subsidiaries as State Bank Day.

Why Should Change the Movie Title Dandupalya? Why Not Name of the Village?

“Why can’t you change the name of your village as Florida?”

This could be one of the funniest ever sentence told by the court. This happened during the public interest litigation filed by the villagers of Dandupalya, a village in Hoskote, near Bangalore to change the name of the title of the Kannada film Dandupalya.

Villagers claimed that the movie Dandupalya, pictured the notorious gang from the village Danduplaya which involved in robbery and murder later sentenced to death, impacts the image of the village. They also informed the court that due to these few criminals from the village, the whole village has got bad name and the villagers are suffering. Youngsters from the village are not getting seats in the colleges. It has become difficult for the villagers to get married due to the notoriety of the gang identified with the name of their village Dandupalay. They claimed the movie will further worsen the situation.

 “Why can’t you change the name of your village as Florida,” a Division Bench comprising Chief Justice Vikramajit Sen and Justice B.V. Nagarathna observed in a lighter vein, The Hindu reported on 29 June 2012.

Madan Patel directed movie Nityanada is also facing title dispute raised by the supportersof self portrayed god-man Swami Nityananda and Nithyananda Dhyana Peetam. Next time I wish it could be Swami Nityanada to get his name changed to protect himself from the impact of the movie Nityananda.

Also read Pooja Gandhi Nude for Dandupalya(?)