“Let's get real about corruption” ( Business Line , August 30) was an interesting piece, especially the last section on the level of discourse! But events so far may be seen as just a step in the right direction and there should be no let-up on the pressure until our “slippery as eel” netas actually deliver some results on combating corruption.

Also, Team Anna should be congratulated for rightly realising that electoral reforms are key to forcing our leaders to perform. However, it will, no doubt, be a struggle of epic proportions, much bigger than the recent one, to get our virtuous and infinitely-wise parliamentarians to pass laws on it.

Anoop G

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Reverse effect

The article “Inflation beyond control of monetary policy”, ( Business Line , August 30) resolves the confusion on the usefulness of interest rate hikes as a tool for controlling inflation. Of particular concern is the price rise in articles of daily consumption. If the increased demand for food articles is from the poorer sections, it is welcome and nothing should be done to curb such demand.

Demand for essentials is unlikely to have arisen from the higher income strata where additional spending is more on semi-luxury and luxury items.

As such, cost-push, diagnosed by the author as the basic problem, is very convincing. Rate hikes are not checking price rises and are perhaps sustaining and fuelling inflation by increasing cost of capital.

Also,if interest increase is meant to manage demand for commodities, the periodic increase in dearness allowance has a reverse effect by putting more money in the hands of employees to meet the rising prices.

Actions of different organs of the government seem to be cancelling out each other.

Inflation has to be tackled by not only lowering interest rates but through removal of production and supply chain constraints in agricultural commodities.

N. S. Parthasarathy

Chennai

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