Using Exchange Rate to Spur Economic Growth not Desired: Rajan

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(Reserve Bank of India RBI) may ease norms for infrastructure funding www.ambitionias.com
  • The RBI and the government don’t favour undervaluation of the exchange rate as a means to spur economic growth, RBI Governor Raghuraman Rajan said.
  • “Some argue that in countries such as China, Japan and Korea business enterprises grew via an undervalued exchange rate.
  • However there are a lot of problems with undervaluing the exchange rate. Some of these problems are reflected in the economic condition of these countries,” he said.
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