Letter: Psychology was critical in India’s fight with inflation | #students | #parents

The Reserve Bank of New Zealand must be content with an honourable second place (Opinion, March 15). I recall India may have been the first country to commit to a specific target for consumer price inflation in the mid 1970s. I first heard of it when a student whose family were prominent in the Indian government bond market addressed us at Strauss Turnbull, the eurobond broker where I worked. He recounted how India’s rampant inflation had been addressed by a vigorous campaign led by the Reserve Bank of India.

For example, anti-inflation rhetoric had been codified by compelling staples’ suppliers and eating places to show on the ticket for an item the current price beside the previous price and the price before that. This was a powerful visual historical narrative of rapidly falling inflation which had the huge, required, psychological impact.

Perry Aldred
Walton-on-Thames, Surrey, UK

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