Is Our Monetary Policy "Sound"?

Published in Business Line on Jan 11, 2007

Central Bankers the world over talk tough about Inflation. But their track record in controlling inflation pretty much deserves an "F". The ironic issue is that the world economy was indeed operating with 0% inflation before the Central Banks were created to formulate "Monetary Policy".

One small addition to the article today. I had stated that Gold prices are undervalued by a factor of ten in that article. The reasoning for that is there in the article titled "On Gold Prices and US Interest Rates" published on Nov 09, 2006