industry loses its reputation, it is difficult to regain the same irrespective of whatever is being done by some genuine microfinance practitioners. the damage to the industry is done by some “ black sheep ” who are not controllable by other genuine performers. in this manner, the quick returns are earned by “ ill - willed ” practitioners, but the social cost has to be borne by the entire industry. hence, the major challenge faced by microfinance industry today is to save itself from the spurious micro - financiers. who is a poor person? the poor are normally defined by reference to income level or calorie intake or the level of opportunities available. all these definitions represent some aspects of the poor which are important. yet, they do not accurately depict the real nature of the poor. a poor person is a person who is unable to assess the risks faced by him and take the required mitigating measures to avoid them. the risk factor is more suitable to identify the poor, because the poor have to operate in a market which is full of risks. if he can successfully wade through the risks, he could succeed in the market as well. if he fails, he would remain a poor forever having to depend on outside help. greed is the killer not many in a society would be able to correctly assess the risks faced by them. if they are unable to assess the risks, then, they cannot expect to take risk mitigating measures as well. many reasons can be adduced to this general failure of individuals to assess risks appropriately. they may not have been taught to assess risks. or, their risks would have been assumed by others, chiefly the government, and as a result, the moral hazard behaviour would have prompted them to take unnecessary risks. even when they are educated and there are no opportunities for moral hazard practices, they may still take risks purely guided by their extreme greed. when the greed overtakes the rational mind, the individual may be blind to what he would get if the scheme fails. people belonging to both rich and poor categories fall into this last category. it is these people who normally fall easy prey to cunning tricksters who are planning to strip them of their wealth by making false promises. all that is necessary is to arouse, by means of a well - orchestrated marketing plan, their greed. the spurious micro - financiers use person to person contact method to outreach potential victims and lure them to leave their

. but, it does not cure the malady of generally rising prices generated by rising nominal aggregate demand over the real aggregate supply. a subsidy could ease the burden on the cost of living of a given consumer or a group of consumers. but, if the subsidy is financed by incurring a loss elsewhere, it does not help to fight inflation. that is because at the place where the loss is incurred, there exists a deficit supply creating pressures for prices to rise. similarly, price controls may keep the cost of living index under control. but, as long as there is excess demand in the macro economy, it does not help to contain inflation. then, what about negative supply shocks such as a temporary fall in the output of agricultural products or increases in the prices of imported goods? they would reduce the real aggregate supply creating an excess demand in the macro economy. it would lead to the increase in the prices of certain consumer goods raising the cost of living of those who consume them. but, that is not inflation. for these one - off events to become inflation, the nominal aggregate demand should also rise continuously over the real aggregate supply. in other words, the macro economy should be characterized by the presence of an excess demand for goods and services. the elimination of this excess demand is the path for curing the malady of inflation. when there is no excess demand or excess supply, then, the macro economy is said to be in balance. such a balance eliminates the pressure on prices to change. the public having observed the general stability in the overall price level would form low expectations on future changes in the prices. this would lead to future price stability as well. for this to happen, all sources of increasing money in the hands of people should be constantly kept under control. this is the wisdom enshrined in “ economic and price stability ”.