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Quick Edit | Baba... blah blah

Quick Edit | Baba... blah blah
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First Published: Wed, Jun 08 2011. 07 56 PM IST
Updated: Sat, Jul 02 2011. 03 39 PM IST
Baba Ramdev wants a rupee to be equal to a dollar, according to a strategy document put out by his organization.
There are two ways to achieve such monetary nirvana. The complicated way is to pray that the government manages to get all the black money stashed away abroad back into the country. Suppose $1 trillion is brought back tomorrow. What will happen? The Indian economy needs around $50 billion a year to finance its current account deficit. Anything above that pushes up the value of the rupee against the dollar. So the extra $950 billion has a good chance of pushing the rupee to parity against the dollar. In the bargain, the competitiveness of the entire economy will be destroyed.
Option two: bring in a new rupee that is equal to 45 current rupees. And you will have parity!
All this is meaningless drivel. Ramdev needs to study arthashastra to complement yogashastra, Kautilya with Patanjali.
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First Published: Wed, Jun 08 2011. 07 56 PM IST