While formal average-inflation-targeting rules have some attractive properties in theory, they could be difficult to communicate and implement in practice due to time-inconsistency problems as well as uncertainty about underlying economic parameters. 10 I prefer flexible inflation averaging that would aim to achieve inflation outcomes that average 2 percent over time.
“If you look at companies that have spent a few years trying to figure out how do things – and I don’t mean that in a negative sense – how the system works; you can survive without being corrupt, without having to pay bribes and actually make a ton of money.” He cites the example of Vodafone, the “poster child for companies with difficulties in India” after it was hit by a huge tax claim, which is now investing in more spectrum and buying out Indian minority holders of its local shares, a sign it sees the country as a good long-term bet.