Just imagine if the rupee had been fixed at 50 to the dollar when times were good. Rather than bemoaning a 25% depreciation, we would be in the midst of an economic and social meltdown that would make our current situation look like a picnic.

The bottom line? A world currency might be best. But in our second best world of competing currency zones, the room to manoeuvre that a flexible currency buys us is invaluable. Just ask the folks in Greece. Read More