Is rupee depreciation a good idea to perk up economy?

It has fiscal constraints and monetary limitations

Given the resource crunch of the Centre and the states as well as the limitations of monetary policy tools, depreciating the rupee against the dollar to boost economic growth, which fell to 5.7 per cent in the April-June quarter, is an idea that has found favour among economists.

The idea had been broached by former chief economic advisor Shankar Acharya. 

However, the economists say it could be just a limited option. The problem of rupee liquidity will arise if the Reserve Bank of India (RBI) buys dollars. Some others suggested that the central bank had been purchasing dollars, but this