Ep 67: Don't Mess With the Exchange Rate

In the last episode, Amit and Ajay spoke about how the state should never mess with the price system. Well, the exchange rate is the most important price -- and the state shouldn't try to control that either! Welcome to Episode 67 of Everything is Everything, a weekly podcast hosted by Amit Varma and Ajay Shah. In this episode, Ajay sheds light on one of his pet peeves -- people's obsession with the exchange rate. It doesn't matter if the rupee is 'strong' or 'weak', he argues -- these terms mean nothing. All mature economies have learnt to leave the exchange rate to the market -- and so should we. A freely fluctuating exchange rate guarantees macroeconomic stability. TABLE OF CONTENTS: 00:00 Packaging 00:13 Intro: Ajay Loves Bumper Stickers! 05:47 Chapter 1: The Exchange Rate is the Most Important Price 21:48 Chapter 2: The Evolution of Exchange Rates 27:46 Chapter 3: The Three Rooms in the House 33:52 Chapter 4: Fluctuating Exchange Rates are Great! 42:57 Chapter 5: The India Story 1:08:47 Chapter 6: Recommendations 1:11:04 Chapter 7: Life Lessons For magnificent, detailed, juicy show notes, ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠click here⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠.