how would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of india?
Answers
RBI or Reserve Bank Of India maintain the phenomena of protectionism and currency manipulation in world Trade. RBI keeps all the record of trade business, export and imprort facts of world trade. There are so many risks for maintaining this, for this macroeconomic stability may effect many times, like many times in all over the world global economy may loss their importance, or many times many
Trade polices brings the war between countries.
The recent phenomena of perfectionism and currency manipulation in world trade will affect the macro - economic stability of India in the following ways:-
1) Depreciation in the value of rupee will occur.
2) inflation will move upwards.
3) Cost of imported products will rise.
4) Tightening of liquidity will occur.
5) Current Account Deficit will increase.
6) Foreign investors will stop setting up industries in India.
7) Economic growth rate will decrease.
8) Interest rate will increase.
9) Important projects in India will be hampered.