So far as my remarks today are concerned, let me say upfront that they relate to the statistical challenge of estimating an equilibrium value of the rupee from an empirical perspective. It will not be useful to interpret them in the context of currency market developments over the last few months and RBI’s response to those pressures. 33.
Inflation remained low and despite high population growth per capita incomes had almost doubled. This favorable situation was reversed in the decade of the 1990s. Growth rates tumbled to an average 3 to 4 per cent and poverty resurged to 33 percent of the population.