Double-digit inflation in India is unusual since it has managed for many years with containing inflation to low single-digit figures. Indian voters are also inflation averse and for years the bureaucracy in charge of the economy has been sensitive to any upsurge in inflation. In those days their salaries were in nominal terms and not adjusted for dearness allowance. So inflation hurt the bosses as much as the masses. Bosses are now disconnected from the masses since they are well cushioned by high salaries and perks. Monetary policy was too occupied with property buyers and also failed to let the rupee stay up against the dollar. Fiscal policy has become insanely expansionist after four years of prudence since these are election days. So domestic policy was fuelling inflation till March and signals in commodity markets abroad were missed. But more than that, India is no longer a closed economy. Policymakers have to begin to think in much more open economy terms. Self-sufficiency is not only not possible but not even desirable for a large complex economy like India's. The international environment has been benign for the entire time India has been liberalising since 1991. Mervyn King, governor of the Bank of England, calls it the