What are the uses of money?

Jun 18th, 2015
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Before the introduction of money, people traded by bartering. One good was exchanged for another good at constantly fluctuating rates. Bartering often created shortages in an economy. The use of money instead of bartering solved this shortage problem (to an extent).

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IMPACT ON INDIAN ECONOMYThis kind of movement leads to high inflation, as India imports around 70% of itscrude oil requirement and the government will have to pay more for it in rupee terms.Due to the control on oil prices, the government may not easily pass the increasedprices to the consumers. Further, this higher import bill will lead to increase in fiscaldeficit for the Govt and will push the inflation, which is already hovering arounddouble-digit mark, which is not good for ordinary people as well. On the other hand,Indian corporate will also have to pay more in rupee terms for procuring their rawmaterials, despite drop in global commodity prices, only because of a depreciatingrupee against dollar.There are many costs and benefits attached to a stronger and a weaker currency.However, while deciding on a policy, the economic and political situation must alsobe factored in. In light of the current depreciation of the rupee, one must assign aweightage to the various costs and benefits and then decide whether thedepreciation is desirable or not. It is most likely that there will be large support forboth views.Why is the Indian Rupee Depreciating?By SamudranilAugust 29, 2013The Indian Rupee has depreciated to an all time low with respect to the US Dollar. On 28th August2013, the Indian rupee had gone down to 68.825 against the Dollar but the situation was somewhatrevived by the Reserve Bank of India that decided to open a special window for helping stat

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