Issues and Challenges of Convertibility

Convertibility is the best tool in the hands of monetary authority of a country to adjust monetary disequilibrium. Monetary disequilibrium arises due to heavy down payment of one country’s currency. In the international arena, one country’s currency is adjusted interms of another country’s currency, so as to make international trade in a larger quantity. Many financial crises have been settled with the help of convertibility. Most industrialized economics like Brazil, Mexico and other Latin American countries experienced with the full convertibility technique. India is also trying to follow full convertibility but the results are only lesser than the expectation. This book made an attempt to bring out all the possible avenues of monetary equilibrium.