Falling Currency Exchange Rates

The Big-Mac index, an index developed by The Economist, tracks the cost of the Big-Mac across nations and idealizes that the purchasing power parity across the globe, since the cost for the same item should be the same anywhere in the world. The most recent index shows that the cost of a $4.56 big-mac in the US is $1.50 in India. Continue reading Falling Currency Exchange Rates

Inflation in India

A quick glance at a financial newspaper armed with a little knowledge of economics, will give you the paradoxical nature of the Indian Economy. The world today, with the possible exception of China, is a global village. In Greece, the government is in tremendous debt; in America, even college graduates don’t have enough jobs. In such a world scenario, India is plagued with a high inflation rate. Inflation is usually a bitter consequence of a well-performing economy, where the masses have more liquidity to buy, than there are commodities to be bought. Are we then to believe that the reason … Continue reading Inflation in India