When CAD is bad, govt should let the rupee drop to 60
With the rupee at Rs 54.30 to the dollar right now, a drop to Rs 60 should give the system enough of a shock to start responding to the crisis. A further drop can be contemplated depending on how the economy responds.
Remember, in 1991, it took two devaluations of the rupee to wake the system up and respond to the challenge of the external crisis. Read More