Inflation will keep on increasing as long as our govt pegs the rupee at 40 Rs per dollar. This is importing inflation on behalf of USA or simply put subsidising the americans.
RE:Depegging from dollar urgently reqd
by rakesh dikshit on Apr 21, 2008 07:18 PM Permalink
Look it from USA's point of view. Bush has depreciated the greenback and in turn has exported inflation to the economies who are keeping their currencies pegged to a particular level. India (at Rs 40 per USD) and China (At 7.002 per USD) are trying hard to protect their exports. However in its short sigted policy - Indians are paying a highre crude import bill (in rupees) and thereby allowing the public sector to ian increased subsidy for the oil marketing companies.
