Economic development - A suggestive framework
- 2014
- p.360-369.
- Apr-Jun
The most concerning chapter for India during last two years and specifically last two months is the weakening of rupee against dollar. It is not only that rupee has lost its value in the global context but also dollar has improved its performance in the global trading markets. The fall of the rupee has brought up various macro economic problems such as slow economic growth, huge current account deficit, rising imports, high interest rates, combining that with the global problem of stimulus unwinding by the Federal Reserve, and that takes investment out of emerging markets, leading to major economic crisis. In this article the authors study the possible measures that can be taken to stabilise the depreciating Indian Rupee and thereby improve the present economic scenario. - Reproduced.