The dilemma of what a government can do when faced with soaring inflation and particularly, food prices, was well illustrated in a recent inter-ministerial dispute in Russia: the Finance Minister wants to cut state spending to curb demand and inflation, while the Economic Development and Trade Minister wants to stimulate the economy by increasing state spending, for helping the poor. (There are of course silver linings to Russia's inflation problem: the rising oil price helps GDP growth, government revenues and exports
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