(Tuesday, October 30; Time 5:00PM; Venue- Gurunath, IITM Campus):
[PC Anna and Subba are sitting in Gurunath waiting for their coupon no. to be called as they have ordered some eatable items.]
PC: "I worked overtime to prepare fiscal consolidation road map in the hope that you fellows (RBI) will coordinate. I had even dreamt to announce a rate cut in a press conference on behalf of you. But, you poured cold water on all my expectations."
Subba: "I welcome your effort to crank up the economy and promises to tame fiscal deficit but who the hell are you to dream a rate cut?" (Let me show the world that we are as autonomous as Feds or other western peers)
PC: "Growth and inflation go hand in hand (good! PC knows Philips curve). However currently we are facing stagflation and in this scenario growth becomes more important. If it persists for longer period, it will create 1991-crises like situation."
Subba: "You people have already created enough damage. It is up to you to translate your policy announcements into concrete results through policy clarity and action and once that happens, I promise credit won't be a constraint. But, Interest rate won't budge till the rate of inflation blinks first."
PC: "No problem! We are committed to the path of fiscal consolidation and if we have to walk alone to face the challenge of growth, then we will walk alone..."
Subba: "Don't worry! We are as much concerned to growth as inflation, only our balance has been shifting..."
[Meanwhile an IITian monkey snatches away their eatable items. So, PC Anna and Subba leave to their offices in Delhi and Mumbai respectively without eating anything. Poor fellows!]
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Scene-II
(Wednesday, October 31; Time 8:00AM; Venue- Room#457, Brahmaputra Hostel, IITM):
[Rakesh and me busy doing macroeconomics assignment. John enters into the room.]
John: "Hey! did you read this news? (by showing the front page of The Economic Times)"
Me: "No. What is that?"
John: "RBI snubs fiscal plan by its monetary policy. And there are quotes and counter-quotes...(giving the newspaper to me)"
[There are quotes like this:
"We are as much concerned about growth as inflation, only our balance has been shifting..."-D Subbarao, RBI Governor.
"If government has to walk alone to face the challenge of growth, well we will walk alone..."-P Chidambaram, Finance Minister
"CRR cut gifts us another Rs.225cr...and another 0.75% would require us to set aside Rs.300cr. We would prefer a secular rate cut"-Pratip Chaudhari, Chairman SBI
and so on...]
Rakesh: "Huh! What the hell RBI has done and why PC Anna and people from banking sector are so unhappy?"
Me: "RBI has decided to leave the repo rate unchanged at 8% but reduced the cash reserve ratio by 25 basis points to 4.25%. (just read a line from the newspaper)"
Rakesh: "So what is the big deal? Don't those people have any other business than debating unnecessarily?"
John: "They have responsibility to run the country. They are not like us who are busy doing Facebook, chatting with GFs and react only when CAG slams its report on mega scams like CWG, 2G, coalgate. etc
Rakesh: "Well! if that is the case, let them do their duty. I don't bother. My responsibility is to finish the macroeconomics assignment and you please don't disturb me."
[Once again we resume doing our macroeconomics assignment. John leaves the room. The newspaper is thrown somewhere without the news even being glanced]
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Scene-III
(Wednesday, October 31; Time 1:00PM; Venue- Room#101, DoMS, IITM):
[Macroeconomics lecture starts and the professor asks about the same news which we didn't even try to glance in the morning. Bad luck!]
Proff: "How many of you are aware of today's news about RBI's monetary policy?"
(Some fellows raise their hands. There are always some Berojgaars who have extra time to read here and there.)
Me: "Oye! raise your hand. (said to John)"
John: "I read only headlines, but you read more than that. Why don't you raise your hand first?"
Proff: "(pointed towards us)What is going on there in the last row? Those who want to talk, may go outside the class."
(We stopped talking. But meanwhile...)
Rakesh: "I could have read the news but this damn assignment eaten away my whole time. When I was in my UG College, I had cultivated the habit of reading newspaper daily."
John: Chal bhaukaali mat de! (Don't boast!)
Proff: "Hey! You all three. Still talking! Get out from the class."
(Thus we leave the class within 5 minutes of the lecture.)
[We decide that today in the evening we would do group study to understand the debate over RBI's monetary policy, it's differences with the government's fiscal policy and other consequences in detail. Since it's 1:10PM and the next lecture will start from 3:00PM, we move towards the canteen for coffee.]
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To be continued....
