The retiree is better off today than before
The retiree is better off today than before: Because he is focusing only on the nominal interest he gets and not on the underlying inflation which has come down even more sharply, from about 10% to 5.5%
This refers to the article "The retiree is better off today than before" (Guest column, Business Standard, February 7, 2016). The occasion, it seems, has made Prof. Rajan win over RBI Governor Dr Raghuram Rajan who is more aware of the impact of inflation on prices of consumer articles including food items and the reluctance of retail prices to move down, once they go up.
As regards the dosanomics, admitting it was only an illustration to drive a point, in the Indian context, the example chosen was cruel. Majority of the Indian pensioners, with the exception of those who retired at high levels in government and organised sector, would opt to cook dosas at home and the cost per dosa will not exceed Rs5 even today. Hope this will not be used as an argument to punish pensioners further.
M G Warrier