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Transcript of Article Analysis
The value of the Indian rupee has been constantly decreasing compared to the American dollar.
In the the past year the rupee has plummeted to a new low despite the attempts of policy makers to stop the decline.
India was seen as a growing world superpower until suddenly the economy took a sharp turn for the worst. Economic growth has slowed down and India fell into an economic crisis.
The federal reserve started selling bonds to investors in order to recover from the loss.
In India imports are becoming more expensive because of the sudden drop.
Inflation is becoming a rising problem
Brazil, China, Indonesia and Thailand are also facing economic problems.
Questions for Discussion
How will the currency decreasing affect the people in India?
Is it possible that India's economy will face depression?
How can the Indian government prevent currency decline and save the economy?
Thoughts and insights
If the currency of India declines than the Indian rupee grows weaker causing people in India to lose money. Not only that but imports will become more expensive. Mass inflation could occur which will be bad for the economy. The value of the Indian currency decreased because people pay more for the dollar. This will effect the people of India inflation will cause them to become poor. The decline in the economy. India's imports will suddenly become more expensive. Gold and fuel are one of the main imports that India needs to reduce.
Currency Decline in India and Indian economic crisis