ScienceGuy

There has been a lot of politics behind the recent rupee depreciation, although not surprisingly! As expected, the opposition targets the party in power, trying to defend their superior performance under their purview. Likewise, the ruling party has been trying to defend its own performance. Though the economic policies don't trickle down quickly (sometimes never) to the ground levels in India but interestingly, such political arguments & targeting trickle very rapidly to individual conversations. So, let's try to decouple the politics and witness the actual economics in play. Firstly, it is important to understand that in this globalized world, performances must be judged on a relative basis. Owing to deep macroeconomic integration amongst economies, the ripples in one of them have repercussions on the other, with the magnitude depending on the size of the source economy. Therefore, to evaluate the performance of the rupee, we must first analyze the performance of other cu