economics

India’s exchange rate has evolved across several regimes spanning over 130 years. These regimes, i.e., formal frameworks with objectives and instruments mapped to them cover the gold exchange standard (1893-1946), the Bretton Woods par value system (1947-1971), the pegged basket-of-currencies regime (1975-1990), a transitional dual exchange rate

The budget deficit stimulates the economy. Without it, the recovery could not have been as fast and vigorous as it turned out to be. The recovery, combined with high interest rates and the influx of foreign capital, tends to keep the dollar strong. The recovery, combined with a high exchange rate, tends to suck in imports and create a trade

In order that new industries may grow fast enough it is usually necessary that some old industries should be allowed to shrink or die. In doing this they help to release the necessary capital and labor for the new industires.

Nominal spending in the economy can originate from one of three sources: income, borrowing, or the sale of assets.

When development of large wind-farms in China began in the late 1990s, all turbines were imported. But Chinese manufacturers acquired wind turbine technology through joint ventures, licensing, and acquisitions, and by 2009 China’s market was dominated by locally-produced turbines. Today, China’s Goldwind is one of the largest wind turbine

Under the current global monetary system that came into effect in 1971, the dollar has had three major cycles of weakness and strength, and each one of these cycles of strength has caused a global short squeeze, leading to financial crises, and impeding growth until resolved. Nations that have the least foreign-exchange reserves and/or the most

Toolmakers operate at the very bleeding edge, coming up with brand new science and technology, with a primary focus on the science and technology themselves.

There was a second feature underlying the automakers’ success: the industrial policy pursued by the Japanese government, through its Ministry of International Trade and Industry (MITI). It pursued a strategy of exporting cars to developed countries, guided by a devalued currency and relatively cheaper wages.

MITI provided ample amounts of

As a result, these companies find it very difficult to invest adequate resources in disruptive technologies—lower-margin opportunities that their customers don’t want—until their customers want them. And by then it is too late.