The following points highlight the two main approaches for determining devaluation of currency. The approaches are: 1. The Elasticity Approach 2. Absorption Approach. 1. The Elasticity Approach: In fact, the success of devaluation in improving the balance of trade position of a country depends on the fulfilment of a condition known as the Mar- shall-Lerner condition. In fact, this [...]
The following points highlight the five well-defined periods in history of Indian currency. The periods are: 1. 1835-1897-The Silver Standard 2. 1898-1917-The Gold Exchange Standard 3. 1917-1927 —The period of Managed Exchange 4. 1927-1931-The Gold Bullion Standard 5. Sep. 1931-1947-The Sterling Exchange Standard. 1. Period of 1835-1879 —The Silver Standard: Before India came under the sway of the British, its [...]
The following points highlight the three distinct periods of paper currency in the history of India. The periods are: 1. Paper Currency Prior to 1861 2. Paper Currency between 1861 to 1919 3. Paper Currency after 1919. 1. Paper Currency Prior to 1861: Prior to 1861, the right of note-issue belonged to private banks, there being no government issue of [...]