Being Quote by Raghuram Rajan
“Ultimately, in the long run we need to immunise our system from being overly responsive to fluctuations in the exchange rate; that is, people should, by and large, be reasonably hedged, or they should borrow more in domestic currency rather than foreign currency.”
About This Quote
Source Speech: Economic policy lecture, 2018
People should hedge against exchange‑rate swings, borrowing domestically rather than abroad.
In simple terms: Hedge against currency fluctuations.
Key Takeaway
Use domestic borrowing.
Themes
economics
risk management
currency
Mood
analytical
cautious
Type
practical
technical
When to use this quote
- corporate finance
- personal investing
- policy planning
Key Concepts
hedging strategies
exchange rate volatility
Questions to Reflect On
- How can you hedge effectively?
- When is foreign borrowing justified?
A Different Perspective
Domestic markets may lack depth.
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