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- Apr 1, 2025
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Its not as simple as that. Hypothetically we can increase the value of INR and bring it on par with USD. But it will have drastic consequences in our domestic economy.I guess my confusion comes from your whole 'chinese are more disciplined than us, we let our currency slide, they did not' angle, coz i dont get how currency exchange rate is like weight watchers program and you can fall asleep at the wheel like us and become fatties apparently in 2 months flat, while apparently chinku always kept up his morning yoga so isnt currency-fatty.
Because from what i can see, the chinese shit-kicked their country far far worse than us in any 'economic' sense during great leap forward, where tens of millions died due to starvation and chinese production flatlined. That to my non-economics mind, should've yeilded 1USD = 5000 yen by this 'weight watchers' logic. Their great leap forward is the equivalent of doing 9 months of kari-tapsyaa weight-watchers then following it up with 10 successive weekends of Indian shaadi and its food.
But clearly it didnt, so clearly i dont understand this business of 'more disciplined with currency by doing 20 more currency pushups than us'.
Currency exchange rate are not that much dependent on state of internal economy. They are more dependent on deficits. They starved their own people but didn't budge on exchange rates.
It will be akin to a household which chooses to forgo material acquisition but not rack up debts. They will take public transport but will not buy personal vehicle. They will eat food one time but will not buy on credit from local grocer. Thats what they did.