Indian Rupee Crisis of 2013

內容大綱
The U.S. Federal Reserve System's decision to taper its quantitative easing program triggered large capital outflows from India, and the rupee depreciated by 13.7 per cent from June to August of 2013. Firms dependent on imports complained of rising costs, but exporters stood to benefit from the depreciation. On a macro level, economic growth dropped and inflation remained high, raising concerns that the much-touted “India growth story” was over. India's central bank, the Reserve Bank of India, faced the difficult task of fighting inflation and stopping the rupee's decline once the economic growth had slowed down. Expectations were high for an appropriate action from the bank, even as room for policy maneuverability appeared limited.
學習目標
<ul><li>To understand the linkages among key macroeconomic variables such as fiscal deficit, current account deficit, inflation and exchange rate.</li><li>To understand the causes of exchange rate movements and the consequences of such movements on firms’ bottom lines and the economy at large.</li><li>To illustrate the application of concepts such as purchasing power parity and the aggregate supply–aggregate demand model.</li></ul>
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