The dollar crisis: possible solutions and their implications for India

Abstract

An attempt is made in this paper to examine the likely impact on India of the Nixon plan for saving the dollar and of some of the possible solutions which have been widely dicussed in the context of the current dollar crisis. An analysis of the problem from the short and the long term points of view reveals a number of implications for India which may not be obvious to the casual observer. The problems and opportunities created by the dollar crisis may not be simple or marginal as many seem to think.