--- title: "Meaning & Key Takeaway of: Ultimately, in the long run we need to…" description: "\"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, b..." image: "https://sms4smile.com/quotes/i/3de/raghuram-rajan-10594_being_ultimately-in-the-long-run-we-need-to-im_2757777.jpg" --- # Ultimately, in the long run we need to immunise our system… ![“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.” quote by Raghuram Rajan](https://sms4smile.com/quotes/i/3de/raghuram-rajan-10594_being_ultimately-in-the-long-run-we-need-to-im_2757777.jpg) [Download](https://sms4smile.com/quotes/i/3de/raghuram-rajan-10594_being_ultimately-in-the-long-run-we-need-to-im_2757777.jpg) [Open image](https://sms4smile.com/quotes/i/3de/raghuram-rajan-10594_being_ultimately-in-the-long-run-we-need-to-im_2757777.jpg) > “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.” [Raghuram Rajan](https://sms4smile.com/quotes/author/raghuram-rajan/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. 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. ★ ★ ★ ★ ★ No ratings yet [Being](https://sms4smile.com/quotes/about/being/) [People](https://sms4smile.com/quotes/about/people/) [System](https://sms4smile.com/quotes/about/system/) ## Related quotes > [China has to move to a more flexible foreign currency trading system, no question about that. 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