‘A Assignment 2 Economic Environment/Macro Economics: PGP 26(D, E) & PGP Finance 03 Prof Ashok Thomas Name: Vik vant Netke Rallmo & Section: PE PAG 1g Sretian D Instructions Please write your name and roll number in capital letters Please read the case Indian Rupee Crisis before answering the questions. 'F you can’t solve it please consult with your friends and understand how we reach the answer. Remember honestly performing these activities will help you in other evaluation components. Write your answers in the space provided using pen. ‘Once you have completed please take a scan and attach the document and upload in the VC. Late submission carries penalty. DEADLINE: 21/12/2022, Wednesday (23:59) 1. Why was India carrying out various financial, fiscal and structural reforms? Ta \441 Tadia was datyg a Balance Pag oinds CSIs , Outing to anunbr 2) actors , Todia had a high discal doc, (8.47 GPP), hgh Gea ig}lkin CREA) witha corey Peyyed to a basher 9) Comrtacits. Risiny in)ladian copld wilha rigid Chagyp rate Led to an apprtialing Peal Cncchuyye pate ehich hurd expert comapllitiveness £ forthe, exacirbal the cortiad accoueel dghat, Fadia hed Fare restrves Y only Haba and prbraal borrowing hited 6p dor 4o uncirtinty . Tadia aychiettd a slacdby Loan keyg ave with the IME (42-3 bn) £ strucliral adjustentat Loan Jrim the bord Bonk, C4s00m) whic, SH pulecld Contrachionarg policies € strecheal reerens This ed ta Tedlia adppling 1s MEP 9) Libnalivert Privatisation £ Clobalisactton. (@ Scanned with OKEN ScannerWary hat gy. Or Che 2013) "Shy , i Is 2. What are the main reasons for the depreciation of the Indian rupee? What impact did the rupee sharp depreciation have on the broader economy? = eer, | Jn 2013, the Faclerel Resave signalled the tapering gets quan titative Es49 progracr, aftr bal) a dial? gf lows tolersd bates This ted do Capital otflows from Eotrgiog Markids back fo the US tenormy. This also alpeted Tedia, trygttiog a sharp depreciation Stondly , dhe corrint accourt Aphcit had ben Jinancedl mang ‘s a ‘aflus, hich were Jar more susceptible te ita ow FVesals « | Capi d CPT inflation was high, eshich , coupled with a lower (lation ta the us, la to rise iq the real exchage rade, lredigg to a werstting a) current account as it hort export Compttitiweness For the broader econ 4 this burst May — busiansges Cspreally thes? with Joraiga — drnocrinerteed — rk aul 6. iia - es A tpt incee de inpds- Ths Od fy jira poping Fempurts, a Te hope 9) Appa Hen. Bet pen fete : ied Ant was fordiga Areorraded wilh gal ALY y diver bidgias this Hie Se Gnrtns 7 cr 1 ' oa the othr bind “i Fd (tm “he risigg real ek choogp ade, 5 prially a shor fatiosiee Gow cost rndysdy fy. oo oe (@ Scanned with OKEN Scanner%, % \ %, *= what do you think is the fut f the indi it (uture course of the Indian rupee? Will It appreciat what did Raghuram Rajan do to handle the rupee crisis? (Write answer according to the cass and situation after 2013). .te or depreciate further? 1) The e60 rnmsal 11s polity tea Cortracttencty PVE daisaz fog tolvad behs to cak spteletup achuty oy beaks 2) 9 redad marked Aprend gor 0D by dirty Wrdiag osP fo al mardetis. 3) The LT placa wbriclins on capihl ovéfiens certain bff The bpd. raced far)) 09 Gold, ahi acai ger bal) gf Taela'c curred accont defer)» Hacer, There i litle hope Jer ao fon prevanend fo Badva’s position, ) the Jiscal polity oes nod movl ia feodin wth parlor policg - ding to agmiel assirbly maya ctates paving thik wr blockers in He ater Jerr, the gortranint 15 aot Likely ado) a coalrachiore ge] fixcel poleey which aught nelly tae elke of the BI char. Asa riull, the olringy books posed -lo depeath Ja thie. pladion in 201A, compleA cc fh (@ Scanned with OKEN Scanner