Saturday, May 17, 2008

Vindaloo And Lassi

This post on the consequences of the rising power of the Indian Rupee is a lot of content for the average person to digest. What is more, it does not give you the two-three sentence summary in English that someone like me can take away and possibly mull over.

I am quite bedeviled by the detail and the lack of a conclusion which is probably because the story is still unfolding. That said, I did find a little nugget of a metaphor explaining the risk of over-heating by the economy by large capital inflows. The author says :

just like a strong vindaloo without the de-rigueur mango lassi accompaniment a rising currency produces its own kind of dyspeptic discomfort

You have to be a Desi to attest to the truthiness of that example and if you are economics challenged like myself you will also wonder if the central bank's market stabilization scheme the author refers to further along in his article is the mango lassi to the vindaloo perpetrated by the plummeting dollar.

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