Monetary steps to cool prices of little use this time: Experts
INFLATION LED BY SUPPLY-SIDE CONSTRAINTS, MONETARY TIGHTENING WON'T HELP Neelakshi Rana NEW DELHI THERE seems to be a near consensus among economists that containing inflation through monetary tightening would prove counterproductive. Unlike in February 2007 when RBI checked inflation by raising rates, they argue, this time inflation is largely led by supply constraints and not demand pull driven. Any credit squeeze would, therefore, hurt both demand and supply, leaving the gap largely unchanged.