For the last few weeks, one has been reading about the global meltdown of economies. The seriously affected are the 'emerging economies' of India(rupee), Brazil(real), South Africa(rand) and Indonesia(rupiah)! They suffer from the following:-
(a) Funding deficits
(b) Slowing economies and
(c) Rising inflation.
Indians can take some solace, though it amounts to nothing, that the rupee has lost 13% against the US $ as against 15% by real over the same period! And the sudden 'capital flight' due to the pull out by foreign investors make the Indian and Indonesian economies more vulnerable because of their wide current account deficits.
And the 'bear' is reigning supreme on the stock markets!
This is the little that I understand when I hear of the 'falling rupee' from the news grabs. Economics and financial trends have never been my forte and had failed to catch my fancy as I feel that there's a good smattering of 'number crunchers' all around.
But what does it mean to us commoners? Randomly listing what comes to mind:-
(a) Rising costs of essential commodities
(b) Quantum jump in the value of the bullion(but our fascination to accumulate gold and silver
can never wane, you see!)
(c) Scarcity of items due to the crazy price fluctuations
(d) The volatility of the stock markets(thankfully, I've none and am therefore sitting pretty!)
(e) The rise of interest rates on loans(always a sore point!)
(f) And the consequent hesitation to spend!
Tailpiece.
I'm sure that this pessimistic phase cannot last long and the rupee will bounce back in strength to retain its glory. And let that happen at the earliest, the number crunchers had better come out with the antidote, pronto!!
(a) Funding deficits
(b) Slowing economies and
(c) Rising inflation.
Indians can take some solace, though it amounts to nothing, that the rupee has lost 13% against the US $ as against 15% by real over the same period! And the sudden 'capital flight' due to the pull out by foreign investors make the Indian and Indonesian economies more vulnerable because of their wide current account deficits.
And the 'bear' is reigning supreme on the stock markets!
This is the little that I understand when I hear of the 'falling rupee' from the news grabs. Economics and financial trends have never been my forte and had failed to catch my fancy as I feel that there's a good smattering of 'number crunchers' all around.
But what does it mean to us commoners? Randomly listing what comes to mind:-
(a) Rising costs of essential commodities
(b) Quantum jump in the value of the bullion(but our fascination to accumulate gold and silver
can never wane, you see!)
(c) Scarcity of items due to the crazy price fluctuations
(d) The volatility of the stock markets(thankfully, I've none and am therefore sitting pretty!)
(e) The rise of interest rates on loans(always a sore point!)
(f) And the consequent hesitation to spend!
Tailpiece.
I'm sure that this pessimistic phase cannot last long and the rupee will bounce back in strength to retain its glory. And let that happen at the earliest, the number crunchers had better come out with the antidote, pronto!!
No comments:
Post a Comment