last week for the first time in history, a fifty rupee note would have bought you just a dollar.
It was a historic breach and in the context of the larger economic forces operating today, its worthwhile knowing exactly why the rupee slid when it did, and why there still seems to be a demand for the dollar despite the financial and economic turmoil in America.
To explain this to us we have with us, Ajay Shah,a professor at the National Institute of Public Finance and policy. Shah studied at the Indian Institute of Technology, Bombay, and at the University of Southern California in Los Angeles. He has held positions at the Centre for Monitoring Indian Economy, the Indira Gandhi Institute for Development Research, and the Ministry of Finance. His research interests include policy issues on Indian economic growth, open economy macroeconomics, public finance, financial economics and pensions.