Notes for the Central Bankers

Dedicated to the Feds, RBI, Central bank of China and Bank of England, South Africa, Brazil and Australia Are currencies overvalued or undervalued? Given the top three economies which have very wide disparities in their nominal and real rates of exchange, including effective exchange rates, it becomes pertinent to apply logic and facts for the widening CADs in these countries. Taking a closer look at the case of RBI in India, the Central Bank has taken a very dovish stance related to the CAD. Here are a few points that can be introduced for the widening CAD, affecting inflation in…