Raghuram Rajan uses 'dosa economics' to explain inflation

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1. raghuram rajan is a an awesome teacher
2. Meanwhile Urjit Patel is still wondering why would anybody buy so many dosas. Is it Anant Ambani's birthday bash?
3. This why im telling buy 2000 Dosa with that 1Lakh, eat eat nd eat frgt abt inflation, intrest, pricipal, nd all.
4. How simply he explained the inflation & interest rates relation!! I wish we ll get teachers like him
5. NDTV is an anti national channel and if a person agreeing to give interview to this third rated channel, you can judge the person. This proves what Subramanian Swamy told that Raguram Rajan is not fully Indian and not fit for public office. I doubt RR integrity too as he is nominated by Upa corrupt sonia. Modiji should have shunted him out in 2014 itself. I don't know what stopped him. seems there should be some reason. Good. that RR is shown door by this September.
6. This guy is out with his dosas..I am glad...Inflation comes down..Dosa prices don't come down..Once it is 55 it only increases incrementally once inflation reduces...So no real gain for the consumer.
7. Now sell this dosa model to usa
8. Someone help me understand this right..if the Interest rate is 8% and inflation is 5.5%, you would have 1,08,000 Rs(on a principal of 1,00,000 Rs) at the end of the year and price of a Dosa would be 52.75 Rs. You could buy approximately 2047 (not 2050 Dosas) in this situation. Hence the Real Interest rate is 2.35% and not 2.5%. What am I missing here?
9. Man, such background  noise. Cant people be quiet when somebody is speaking? Seriously!
10. I know that you are in india not for money but fame.. This job not good for you..better go back to america and earn more money and make peaceful life....india is not a good country...india got many dosas..like political dosa religious dosa corrupted dosa poverty dosa homeless dosa..swamy dosa..all will create problems 
11. I know that you are in india not for money but fame.. This job not good for you..better go back to america and earn more money and make peaceful life....india is not a good country...
12. Prices never go down.I can never understand economics.
13. Dosa prices never decreases
14. What he doesn't consider here in this analogy is that the dosas, after having seen the period of 10% inflation, have their prices increased at Rs.55. And when the inflation rate lowers, the prices, which haven't remained at 50, will not get lowered. Rather, they'll increase further, but at a lower rate. So, due to whichever effect this happens, the guy will not get more dosas on the whole.
15. Greatly explained with easy illustration. Great economist.
16. But, how can we be sure, inflation will be around 5%, if we keep interests as 8?`
17. Just one thing.. he is unfortunately taking about WPI and not CPI... Its a shame we are still stuck with WPI just because it gives us a number which is smaller and more palatable.. the fishers logic that he used to explain the dosa consumption problem is correct but he is surely misguiding people by not explaining why the old man is troubled.. its CPI thats troubling him and u have used WPI to calculate the real return... So yes there is a problem of ROI from deposits if one just keeps money in banks/ invests earning a nominal rate of interest @8-10% even if the official govt inflation figures are 4-5% the CPI is well above 8-10%
    
    (I knows thats a fair bit of jargon but these small differences matter a lot.. and are used to misguide individuals)
18. Which Dosa shop reduces their price? Mr. Rajan, pls tell me. You miss that fact totally.. I agree TV price will reduce... Food and other essential items, no one reduces the price. Though raw material procurement price for making the Dosa is less, the restaurants just ends up making more profit. Even in the US, McDonalds did not reduce the price of burgers during the recession. So, though I agree with you on a lot of things and am an admirer, here you are way off.
19. Raghu Ram Rajan should remember that he is a Central Banker and neither a politician nor a Nehru-Gandhi "Economist". Central Bankers should not be heard but be felt in the value of the rupee, the fiscal discipline of the Government and the integrity of the Banking system. Instead of taking time off from his work to lecture on inflation and dosas or wag a "tolerance" finger at the Prime Minister as part of the Obama-Sonia "parivar-that-loots-together-to-stay-together" chorus of Fifth Columnists, he should study M. H. De Kock and R. S. Sayers and learn to measure up to his job. Unless, of course, he is as erudition, integrity, culture and arithmetic challenged as India's Indian educated Judiciary, Bureaucracy, Police, Professors and other appointed and promoted on the basis of birth and Tehsildar's certificates. His instruments are OMO, BR, Audit, fines, and capping government over drafts. Not his mouth.
20. He could have simply said that with 10% interest rates and 10% inflation his investments worth Rs 1 lac actually reap him no financial gains, while with 8% interest rates and 4.5% inflation his financial gains on Rs 1 lac of investments are 3.5% (8% - 4.5%)