Today, I am presenting a discussion I had with one the readers on macroeconomic issues. I am not an economist so I cannot explain in economist language. I attempted to present my understanding in a very layman language. I gave him a very simplistic view. So here you go.
I am trying to understand some macro economics concepts in addition to my continued focus on fundamental analysis.I was going through min paper yesterday and few doubts cropped up. In a column discussing the alternative to dollar,there was a discussion that pressure is mounting on china to make yuan freely convertible and let it appreciate more. My questions are:
- Why is China not allowing its currency to appreciate by market forces like other countries(i understand that the currency is not entirely free,as central banks do interfere many times,but with China its very rigid).
- The column also says that rupee has not appreciated that much probably because india runs current a/c deficit.What does this mean and how it affects the currency.
- Finally ,the column says that most central banks are obliged to support their currencies.what does this mean.I mean what will happen if we let rupee appreciate to say 30rs..why cant be do that… Continue reading rest of this article…
In last few months, quite a few Indian business houses embarked upon fund raising for one reason or the other. Some businesses raised funds for debt financing needs, some needed operation cash, some needed working capital, some need for growth nee
