Onion, Rupee and Gold

Disclaimer (and this one is right at the beginning) – This blog post is not about economic theories of prices.

I’m tempted to propose a new theory. Let us call this theory as ‘Aam Theory’ to be named after Aaam Aadmi i.e. common man.

Hypothesis One – Price of onions and value of Indian Rupee (against U.S. Dollar) are inversely proportional to each other. Thus when onions becomes costly, rupee becomes cheap (weak).

Hypothesis Two – When the value of Rupee depreciates against U.S. Dollar the price of Gold increases in India.

Hypothesis Three – When people buy less onions they buy more gold. Due to this surge in demand for gold, its price goes up!

Well, jokes apart, when people feel the heat of prices on every day consumables, they don’t care what happens in global market. They just bad mouth entire system of governance and express utter disgust over national economic policies.

Funny part of this story is that U.S., which can be safely blamed for our aggravating pain, has the last laugh. This is because neither it wants our onion nor our rupee. Gold?… there is excess of that in the U.S.When it takes away all the money it had invested in good times, it merrily makes us weep.

So, as of now, all the three i.e. Onions, Rupee and Gold are making us shed tears. Why should we?

Nation demands an answer!


Author: anilkshatriyablog

I work as Assistant Professor in the area of Accounting at IMT Nagpur. I love teaching, writing and cycling. I follow a simple principle, 'Help ever, hurt never'.

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