WITH all eyes on the demonetisation, the economists view Rupee with uplifted brows, when it will resurrect from its recent lows against the US dollars.
Adding salt to the sea, the RBI's intervention by selling the US$500 billion does not make any notable difference.
Sucking out the liquidity from the economy has destabilized all the smooth functioning gears of the system and if this persists for a month, surely the economy has high leverage to the low productivity and low investment levels, a prelude to recession.
Pulling an economy from recovery to recession is trivial, but recovering it from the recession is embedded with thorns and bushes.
Policy makers should keep in mind the aftermaths of any hard and fast actions on the economy. Fencing the rupee, before it touches a new low is a word of caution from all the economists.
M. Rajasekaran
nalyst - Indian Macros
[email protected]
- Saturday, 23 November 2024 |
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