Steering between two extremes
Description
India's current account deficit has jumped to over 4% of gross domestic product (GDP) by some estimates, the highest since Independence. At the same time, the rupee has risen in real (i.e., inflation-adjusted) terms over the last few months, going by the real effective exchange rate (REER) index calculated by the Reserve Bank of India (RBI). The previous biggest external deficits were during the crisis of 1991 (3%) and in 1957 (3.2%) due to the Mahalanobis plan, when policy veered leftward, as Mathew Joseph has pointed out in an article suggestively titled "RBI should act on the exchange rate front" (The Hindu Business Line, 19 April). Read more at: https://www.livemint.com/Opinion/NJKW2U2QUNjMxbQH564UYO/Steering-between-two-extremes.html
Copyright Date
May 2010
Publication Date
10-5-2010
Publication Title
LiveMint
Publisher
HT Media
Keywords
Gross Domestic Product, GDP, Inflation, Real effective exchange rate, REER
Source Link URL
https://www.livemint.com/Opinion/NJKW2U2QUNjMxbQH564UYO/Steering-between-two-extremes.html
