In addition continued investment in a broad range of infrastructure should contribute to improving the productive capacity of the economy. The central bank is not overly concerned at this point in time about the impact of expansionary fiscal policy on inflation, as it is suitable given current conditions. 7.
*  *  *  “I have said many, many times that inflation is a sinister beast.” Richard Fisher 1. I thank the Indian Association for Research in National Income and Wealth (IARNIW) for giving me this opportunity to speak on the important issue of inflation measurement in India which is a key theme of this year’s Conference.