RBI’s inflation conundrum in a rocky world

News Snapshot:

Geopolitical conflicts and the new cold war are the new facts, and they have upended the oil market, plus various food and other commodity markets. Disruptions will continue as the world coalesces into competing blocs that want to relocate sourcing points. Climate-change issues impose other costs. So, prices will rise even if demand is weak. Monetary policy in this situation has no answers. Those in charge of it try to hide their impotence by coining slogans like “higher (interest rates) for longer”. On the evidence at hand, inflation targeting works only when the world economy is normal (if there is...