Bundesbank To Accept Tiny Bit More Inflation

From its current level of 2.1%. Which means that the Buba could exceptionally allow price levels to increase to a max of 3%. This should help its European trading partners improve their trade relationships with the continent's growth engine. Think of it as Germany accepting to be a tiny bit less competitive -- by willing to take up a little more inflation than usual and that for a short period too -- to help pull its neighbours out of the current crisis. That will not make the German economy grow faster. Nope. It will more likely, albeit barely, reduce the strong clip at which it has been growing as of late.

Bean-counters, rent-seekers and other clowns who advocate a persistent rupee depreciation should not construe this as a justification for Mauritius to take up more inflation. Our inflation rate is already on the high side. Besides monetary policy has never been a substitute for a blatantly ridiculous land use.