I got to tell you guys. This whole series of articles warning against the rising rupee on rediff is just getting on my nerves. Does'nt rediff have any economist to read these ignorant articles before they get published. An "economist" is someone who has a Masters or a Ph.D. in economics and ususally they spend their career studying trade, exchage rates, unemployment, GDP growth etc. It is a good idea to get these experts to actually read these articels before they get published!!! These articels spread several pieces of false information and this is done so many times that it is stupid!!! MYTH #1 : RISING RUPEE MAY LEAD TO UNEMPLOYMENT : There is no evidence whatsoever that trade or lack thereoff will lead to overall increase in unemployment. Yes, change in the pattern of trade may lead to reallocation of labor to different sectors. For e.g., rising rupee may lead to certain Indian airlines buying Boeing jets to increase their service leading to more jobs in aviation eventhough jobs in software industry might decrease. But the overall level of unemployment will be unaffected. When the govt. spends tax rupees to artificially undervalue the rupee, it is transferring wealth from those who are not involved in the export sector to those who are. These things should be left the market! When market is left to act onits own, resources get allocated such that India's comparative advantage is exploited. Rediff : Please get an economist!!
