Sunday, April 04, 2004

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| | The Rupee Confusion.

"If the finance minister is to take any position other than to simply assert that the market will eventually find its own balance, and that individual players must learn to adjust to a strengthening rupee, then he has to do two things."

One is to open up on the trade account as soon as possible after the elections, by slashing customs duties further so as to bring about a balance in flows.

The second is to force down interest rates in the banking system, through the usual signalling process and by controlling the government's own borrowing programme.

If none of this is done, and the rupee continues to climb, expect howls of protest from India's business community, and some denting of the feel-good factor.

What the fu**, did i learn economics in the same school as these guys ???


listening to Clocks - Coldplay.

JaI. | 1:23 AM