"As has been suggested by over the last couple of months the fear of inflation is looming large in front of most of the policy makers. It now needs to be seen how they react to this very new and difficult situation. Most of the policy makers have resorted to pumping in huge sums of money into the system so as to prevent the economies from entering into deflationary cycle. An indirect result of that has been rising yields of the various government treasuries, which is resulting in higher interest rates.
Central banks and the Governments are facing a very peculiar situation, if they buyback the bonds in order to reduce interest rates, it would result in higher inflation in the long run and also signal a large budget deficit. If they do not buy, the yields would rise and that will diminish the prospects of faster recovery. With unemployment rising, even if with a slower pace, the choice in front of the central banks and the governments is a very difficult one. I think the best way is to let markets naturally decide the best course to stabilization."
About Mr Siddharth Shankar
Mr Siddharth Shankar is an Economist and Financial Expert. In the last 12 years, Mr. Siddharth Shankar has established himself as a master in tackling financial hurdles for his clients. He does Independent Consulting for top notch companies also. His expertise is to structuring Financial Products for companies to cover their financial risks that were generated due to their international exposure to Money and commodity markets. Many national and international corporate houses still seek his opinion. He has been involved with the marketing systems of Google, Yahoo and other search engines to achieve the maximum effectiveness of their campaigns. His expertise lies in Product Conceptualization, Web-based marketing of Products. He also heads the Financial Services Company. Mr Siddharth Shankar holds the position of Director in the Financial Services Company "KASSA".
