#BalanceSheetRisk

BasisPointInsight.com - Why a Weaker Rupee Doesn’t Always Mean Stronger Growth by V Thiagarajan Exchange rate depreciation is often read as an engine of growth. For India, import dependence and balance sheet vulnerabilities tell a different story. by V Thiagarajan, BasisPointInsight.com

2/2 The trade channel weakens just as the financial channel begins to tighten balance sheets and credit. What looks expansionary in theory can turn contractionary in practice.

Read 𝐕 𝐓𝐡𝐢𝐚𝐠𝐚𝐫𝐚𝐣𝐚𝐧’s column for BasisPoint 👇

#MacroThinking #BalanceSheetRisk #IndiaMacro