Study: 5 times more corruption is required to stop the slide of the rupee
A study of Indian Government reveals that it requires at least 5 times improvement in scams and corruption to suck excess liquidity of the rupee and help it to appreciate against dollar.
"We encourage maximum number of bureaucrats and ministers to increase scams and corruption so that Rupee slide will stop. India requires improving black money statistics such as black money man ratio and scams to minister ratio to suck the excess liquidity of Rupee from the economy," said India's Law Minister Kapil Sibal.
Sibal told India Satire correspondent that the situation was worsening as the dollar is flowing out of the economy while rupee is getting released into system putting pressure on the currency.
"Government is planning to liberalize norms for putting black money in the Swiss banks so that exodus of excess money will be easily possible. We have also prepared new draft black money privacy policies to help scamsters easily take away money from the system," said Sibal.
A study conducted by the government with the help of independent research agency reveals that if corruption increases by at least five times and that money put in the Swiss banks, the Rupee will appreciate by 5% helping the economy to recover fast.
"According to simple economic theory if you reduce the supply of commodity from the market, price of that commodity appreciates," said the study manager Neeraj Kumar.
Adding to new measures to improve the black money situation in India, Kapil Sibal said "Government is also thinking of measures like FDI in corruption and scams, which are most luring areas for the foreign investors."
