Rupee at 80: The Indian tradition of political involvement in exchange rate

Despite the Sangh Parivar's belief that a strong rupee is good, the govt has seen the wisdom of letting it depreciate gradually

One dollar is now nearly worth Rs 80. The Opposition is having great fun because Prime Minister Narendra Modi had promised a much stronger rupee when he was campaigning in 2013 and 2014.

Others, who are very learned in these matters, commented on this website yesterday on the 80/dollar thing. So here, let me recall a very old debate on it. It happened between 1927 and 1939. The difference is that whereas then it was only about economics, now it’s all about politics.

In those far-off days, London’s monetary policies had restricted the supply of currency and credit,