ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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NEW DELHI-Delusions of Demand Management

Delusions of Demand Management B M THE ordinance promulgated last weekend imposing a virtual wage freeze on workers and salaried employees in the organised sector was not entirely unexpected. As for the ceiling on dividends announced simultaneously, it was obviously intended to cushion the shock of the wage and DA freeze and to make it look that the government was holding the scales even between workers and dividend-earners. Though official spokesmen have denied it, the government has been thrown on the defensive by the sharp reaction of the trade unions to the wage and DA freeze. It has, therefore, begun to talk of a comprehensive package of anti- inflationary measures. But the main emphasis of government policy is now set. The emphasis is on arresting further growth of money supply with the public which, it is hoped, will reduce aggregate demand and thereby relieve pressure on prices.

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